Oil and Natural Gas Corporation (ONGC) shares will remain in focus after the company's finance head, Anupam Agarwal, said it expects to secure operatorship rights for two Venezuelan oil projects within the next three to six months. The company is in advanced discussions with the Venezuelan and US authorities, Agarwal said during an analyst call on Friday, according to a Reuters report.
The development comes ahead of the special one-hour Diwali Muhurat Trading session on Sunday, 8 November, marking the beginning of the new Hindu financial year, Samvat 2083. Indian stock exchanges will remain open for the special session from 2:20 pm to 3:30 pm, despite Sunday being a regular market holiday.
According to the Reuters report, ONGC Videsh, the overseas investment arm of ONGC, has more than $500 million in pending dividends from its stakes in two Venezuelan projects — the San Cristobal oilfield and the Carabobo 1 field.
Agarwal said the pending dividends would be adjusted once the new operatorship agreements are finalised. Under the proposed arrangement, ONGC would move beyond its existing role as an investor to operate the projects and sell their output.
The arrangement also includes a provision that could allow ONGC to acquire stakes in additional Venezuelan oilfields, he said.