Indian companies with high exposure to Venezuela to keep an eye on

SYNOPSIS: US military action in Venezuela has revived focus on its vast oil, gold and mineral wealth, raising geopolitical uncertainty and scrutiny of Indian energy, pharma and metals companies with exposure.

It came as a surprise to many of us when news broke about a US military attack on Venezuela and the arrest of President Nicolás Maduro and his wife on the name of alleged drug and weapons charges. Almost overnight, global attention swung back to Venezuela – a country most people hear about only during crises.

What makes Venezuela so significant is what lies beneath its soil. The country holds the largest proven oil reserves in the world, estimated at around 303 billion barrels. At current prices, that oil alone is valued at roughly $17 trillion. Yet, despite this staggering wealth, Venezuela today produces barely 1 percent of global oil output, largely because of years of sanctions, especially those imposed by the United States on the Chavista regime.

Oil isn’t the only asset Venezuela sits on. The country also has 161 metric tonnes of gold reserves, worth about $22 billion, and every $100 rise in gold prices adds nearly $500 million to that value. Beyond gold and oil, Venezuela is believed to hold vast untapped reserves of coal, nickel, copper, and phosphates – resources that are likely to draw fresh attention amid Trump’s new statement of “running” the country and fixing its oil infrastructure.

These US military operations have once again brought Indian companies with past or ongoing exposure to Venezuela back into focus.

Before sanctions tightened in 2019, India was among Venezuela’s largest crude buyers, importing over 4 lakh barrels per day at its peak. Indian refiners, especially Reliance,  had invested heavily in complex refineries tailored to process Venezuela’s heavy crude, which is ideal for diesel production.

Although direct trade between India and Venezuela has sharply declined due to sanctions, payment risks, and compliance issues, the story doesn’t end there. Several Indian public- and private-sector companies still have equity stakes, subsidiaries, overseas offices, or legacy commercial ties in Venezuela.

Here’s a look at some Indian companies that still have visible links to Venezuela and could remain on investors’ radar:

Oil & Natural Gas Corporation Limited

ONGC’s overseas arm, ONGC Videsh (OVL), is one of India’s most directly exposed players in Venezuela’s hydrocarbons sector. OVL holds equity stakes in two oil projects and jointly operates the San Cristobal oilfield in eastern Venezuela. While the asset itself remains commercially viable, US sanctions imposed in 2020 severely restricted access to drilling rigs, technology, oilfield services, and even dividend payments.

As a result, Venezuela has failed to pay dividends worth about $536 million on OVL’s 40 percent stake up to 2014. Including dues accumulated after that period, total outstanding payments owed to ONGC are estimated at around $1 billion, according to officials.

Indian Oil Corporation Limited

IOC also has exposure through its equity participation in Venezuela’s Carabobo heavy-oil project. Its subsidiary, IOC Sweden AB, functions as an investment vehicle for exploration and production assets in Venezuela, alongside a battery technology company in Israel.

In its FY25 annual report, IOC noted that IOC Sweden AB, via its JV INDOIL Netherlands B.V., has invested in the Petrocarabobo project. However, the outcome of this investment remains uncertain and may be delayed due to Venezuela’s ongoing political and economic challenges.

Oil India Limited

Oil India entered Venezuela in 2009 through the Carabobo project, the same year it launched its IPO. The company holds a 3.5 percent minority stake in a Venezuelan oil JV alongside OVL (11 percent) and IOC (3.5 percent).

Although production and monetisation have remained constrained for years, these assets continue to sit on Oil India’s books and remain sensitive to any shifts in political control or sanctions. 

The company’s overseas E&P portfolio currently includes producing assets in Russia (3) and Venezuela (1), along with development and exploration projects across Africa, West Asia, and Asia.

Mangalore Refinery and Petrochemicals Limited

As per a few reports, MRPL has imported Venezuelan crude in the past. Any prolonged instability or tightening of sanctions could further complicate sourcing options in the future – especially if trade channels reopen and then face renewed restrictions.

Reliance Industries Limited

Among private refiners, Reliance Industries and Nayara Energy have historically sourced Venezuelan crude, particularly heavier grades suited to complex refineries.

Analysts point out that the US cannot replace all international players in Venezuela and may still need companies like OVL and Reliance, not just for technical expertise, but also for market access.

For Reliance, Venezuelan heavy crude is seen more as an advantage than a risk. Along with Nayara Energy, IOC, HPCL-Mittal, and MRPL, Reliance has the capability to efficiently blend heavy crude, produce higher-value fuels, and reduce India’s dependence on any single supplier, including Russia.

Engineers India Limited

Beyond energy producers, Engineers India maintains an overseas office in Caracas to support its international operations. While the company isn’t directly involved in production assets, having an on-ground presence exposes it to administrative, regulatory, and security risks during periods of political unrest.

Pharmaceutical companies

Indian pharma companies also have varying levels of exposure. Sun Pharmaceutical Industries operates through its Venezuelan subsidiary, Sun Pharma de Venezuela, C.A.

Glenmark Pharma runs local operations through a registered arm, while Cipla has historically exported essential medicines to the country, reflecting both humanitarian and commercial ties.

Meanwhile, Dr. Reddy’s Laboratories dissolved its wholly owned Venezuelan subsidiary in June 2024 – a move that now appears timely given the renewed volatility.

Metals & Industrial exposure

In the metals space, Jindal Steel & Power stands out due to its links with Venezuela’s largest iron-ore complex. Any disruption to mining activity, logistics, or export infrastructure could have a direct impact on operations and valuations.

Overall, while India’s direct trade with Venezuela has faded over the years, these legacy investments and operational links mean that any geopolitical shift, or change in sanctions can still have meaningful implications for several Indian companies.

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