Oil India expects additional revenue from its Venezuelan operations as production resumes at the Carabobo oil project. The state-run explorer is also looking at opportunities to expand its presence in Russia.
Highlights
- Oil India expects additional revenue from its Venezuelan assets after operations resumed.
- Production at the Carabobo oil project has restarted, with seven wells reportedly drilled.
- The company expects revenue from overseas operations to increase over the next two years.
- Oil India holds a 3.5% stake in the Carabobo oil project in Venezuela.
New Delhi: State-run Oil India Ltd (OIL) expects its overseas revenue to rise as operations resume at its Venezuelan assets, while the company is also exploring opportunities to expand its presence in Russia.
According to a report, Oil India expects additional revenue from the Carabobo oil project in Venezuela. The company holds a 3.5% stake in the project, where operations have resumed and seven wells have reportedly been drilled.
A senior company official said revenue from overseas operations is expected to increase over the next two years. The resumption of production in Venezuela could provide an additional boost to the company’s international earnings.
Oil India also has significant investments in Russia. Along with Indian Oil, it holds a 23.9% stake in Vankorneft and a 29.9% stake in Taas-Yuryakh Neftegazodobycha.
The company is exploring ways to recover around $300 million in dividend income from its two Russian investments. These funds have remained held at the State Bank of India’s Moscow branch because of Western sanctions, according to the report.
Oil India is now assessing options to unlock the dividend amount while complying with applicable sanctions and regulatory requirements.
At the same time, the company is looking for further opportunities in Russia as part of its overseas expansion strategy. Higher production and revenue from Venezuela, along with the potential recovery of Russian dividend income, could strengthen Oil India’s international business over the coming years.
