Mumbai, Aug. 17 -- The reports further said that the U.S. approval removes a key hurdle for ONGC's Venezuelan investments and could pave the way for the state-run explorer to expand production, sign new agreements and take over operatorship of some projects from Venezuela's state oil company PDVSA.

ONGC Videsh, the overseas investment arm of ONGC, owns a 40% stake in the San Cristobal oil project, with the remaining interest held by Venezuela's state-owned oil company, Petroleos de Venezuela S.A. (PDVSA). The company also has an 11% interest in the Carabobo oil project, which is currently under development.

An OFAC licence would allow ONGC Videsh to undertake financial transactions related to its Venezuelan assets and could facilitate t...