The US invasion of Venezuela may deliver a direct benefit to India, potentially unlocking close to $1 billion in long-pending dues linked to the petroleum sector.

ONGC Videsh Ltd (OVL) jointly operates the San Cristobal oilfield in eastern Venezuela, but output has been severely curtailed as US restrictions blocked access to critical technology, equipment and services — leaving commercially viable reserves effectively stranded.

Venezuela failed to pay OVL $536 million in dividends due on its 40 per cent stake in the field up to 2014, and a near-equivalent amount for the subsequent period for which Caracas has refused to permit audits, effectively freezing settlement of the claims.

Analysts and energy executives said if sanctions are eased, OVL can move rigs and other equipment from places, such as its parent ONGC’s oil fields in Gujarat, to San Cristobal to revive output that has plummeted to 5,000-10,000 barrels per day, officials in the know of the matter told PTI.

The onshore field can produce 80,000-1,00,000 bpd with more wells and better equipment, they said, adding that San Cristobal needs rigs similar to those operating in Gujarat, and ONGC owns many such rigs.

US control of the Venezuelan oil sector also means exports to the world could restart in future, allowing OVL to recoup its past $1 billion dues from San Cristobal, they said.

In fact, OVL had sought a ‘specific licence’ sanctions waiver, similar to one Office of the Foreign Assets Control (OFAC) had granted to Chevron to operate the oilfield and export oil from it.

Moreover, OVL and other Indian firms can revive production from the Carabobo-1 Area — another Venezuelan oilfield with Indian interest. OVL holds 11 per cent interest in Carabobo-1, while IOC and Oil India hold 3.5 per cent stake each.