ONGC Videsh Limited (OVL), the overseas investment arm of Oil and Natural Gas Corporation (ONGC), is preparing an investment plan of around $200 million to revive production at the San Cristobal oilfield in Venezuela. The planned investment aims to put the long-running producing asset back on a growth trajectory following years of limited capital expenditure and operational restrictions linked to sanctions. OVL expects to deploy the investment over the next 12 months, focusing primarily on well workovers, equipment upgrades and essential field repairs.
San Cristobal Oilfield Production Drops Sharply
The San Cristobal oilfield previously produced around 45,000–50,000 barrels per day (bpd) at its peak. However, output has fallen significantly in recent years. Production currently stands at approximately 4,000–5,000 bpd, reflecting the impact of constrained investment, ageing infrastructure and operational challenges associated with sanctions.
Investment Targets Gradual Production Recovery
The proposed $200 million investment is expected to improve the field’s operational reliability and support a gradual recovery in oil production. However, the investment is not expected to immediately restore San Cristobal to its historical peak output. As reported by indianmasterminds.com, OVL plans to strengthen the field’s infrastructure and production capabilities progressively, creating a foundation for longer-term growth.
