India has initiated diplomatic discussions with both Venezuela and the United States to address the issue of ONGC Videsh's stuck dividends, according to recent reports. The negotiations represent a significant effort by the Indian government to resolve financial complications that have prevented the repatriation of funds belonging to the overseas investment arm of the country's largest oil exploration company.

Diplomatic Engagement

Oil & Natural Gas Corporation Videsh Limited (OVL), the international investment subsidiary, has been facing challenges in accessing dividend payments due to complex geopolitical circumstances. The Indian government's engagement with both Venezuelan and American authorities indicates the multi-jurisdictional nature of the issue and the need for coordinated diplomatic solutions.

Financial Implications

The stuck dividends represent a significant financial concern for ONGC Videsh, which operates various international projects and investments. The resolution of this matter would enable the company to access funds that are currently inaccessible, potentially improving its financial position and operational flexibility.

Strategic Importance

The ongoing talks highlight the intersection of energy sector investments with international relations and sanctions regimes. The outcome of these negotiations could have broader implications for Indian energy companies' overseas operations and their ability to repatriate earnings from international ventures.

The resolution of ONGC Videsh's dividend issue remains dependent on the successful conclusion of diplomatic discussions between the involved parties. The multi-party nature of the talks reflects the complex international framework within which energy sector investments operate in the current geopolitical environment.

Oil & Natural Gas Corporation has successfully completed its investment in two joint venture companies formed in partnership with Mitsui O.S.K. Lines Ltd (MOL), Japan, marking a significant step in securing ethane transportation for its subsidiary operations. The investment, totaling ₹40.00 crores, establishes ONGC as a 50% joint venture partner in both entities through private placement of equity shares.

Joint Venture Structure and Investment Details

The company has been allotted equity shares in two joint venture entities registered in Gift City, Gandhinagar. The investment structure demonstrates ONGC's strategic approach to securing feedstock transportation capabilities for its petrochemical operations.

Strategic Purpose and Operations

Each joint venture will own one Very Large Ethane Carrier (VLEC) that will operate under the Indian flag. These vessels are specifically designed for transporting ethane from the United States of America to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC. The partnership leverages Mitsui O.S.K. Lines' expertise in shipping operations while providing ONGC with direct control over its ethane supply chain.

Regulatory Approvals and Timeline

The joint venture formation has received necessary regulatory clearance from the Department of Investment and Public Asset Management (DIPAM). Both companies were incorporated in September 2025 and have not yet commenced business activities. The acquisition was completed in January 2026, following earlier filings dated November 10, 2025, and a press release dated January 5, 2026.

Business Impact and Industry Focus

The acquisition represents ONGC's expansion into the shipping industry through strategic partnership. The joint ventures operate in the shipping sector, specifically focusing on ethane transportation services. This investment does not constitute a related party transaction, as confirmed in the regulatory disclosure. The partnership structure ensures equal control and risk-sharing between ONGC and Mitsui O.S.K. Lines Ltd in both entities.

The investment strengthens ONGC's integrated value chain by securing dedicated transportation capacity for ethane imports, supporting the feedstock requirements of its petrochemical subsidiary OPaL and enhancing supply chain reliability for its downstream operations.