U.S. actions against Venezuela have ignited global concerns over oil trade stability, with India squarely in the crosshairs due to its deep ties. Former Foreign Secretary Harsh Vardhan Shringla offered a clear-eyed view on the implications during recent remarks in New Delhi.
India’s $6 billion commitment funded key projects, enabling crude imports that U.S. penalties abruptly ended. ONGC Videsh leads with 40% in San Cristobal and joint stakes in Carabobo 1. ‘It’s a vital producer with unparalleled reserves,’ Shringla stressed, urging focus on revival strategies amid uncertainty.
Optimism flickers from Jefferies reports: political changes may free $500 million in ONGC dividends from early San Cristobal output. Post-2014 shutdowns stalled further gains, but renewed access could change that. As America asserts control, crude export bans might soften, swelling supply and squeezing prices—per Trump’s hardline stance.
Shringla called for vigilance: ‘How do we reconnect and navigate bans?’ India’s energy puzzle demands agility—hedging bets across suppliers while eyeing Venezuela’s bounty. This saga underscores the high stakes of international oil chess, where patience and diplomacy could unlock billions for Indian stakeholders.