India's Reliance open to buying Venezuelan crude if opportunity arises

Reliance Industries Ltd. is open to purchasing Venezuelan crude if the opportunity arises for buyers other than the US, the company said late Jan. 8.

"We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner," a Reliance spokesperson said.

US Energy Secretary Chris Wright said Jan. 7 that Washington plans to lift its oil embargo on Venezuela and control the proceeds from oil sales, with the government marketing Venezuelan crude to US refineries and international buyers while depositing revenues into US-controlled accounts.

His comments came a day after US President Donald Trump said Venezuela will turn over between 30 million and 50 million barrels of sanctioned oil to the US to be sold at market prices. The US removed Venezuela's former president, Nicolás Maduro, from power on Jan. 3.

India imported about 300,000 b/d of Venezuelan-origin crude oil in 2019, data from S&P Global Commodities at Sea showed. Since then, the flows have declined to 25 million barrels for the entire of 2024. In 2025, a total of five VLCCs -- one per month -- discharged crude at the port of Sikka, with the last discharge occurring in May 2025.

Competition ahead

"If the Venezuelan crude opportunity opens up, then Reliance could reintroduce Venezuelan grades like Merey-16 to its crude mix. It will compete directly with alternatives, such as Iraqi Basrah Heavy and Canadian Cold Lake," said Benjamin Tang, head of liquid bulk at CAS.

ONGC Videsh is involved in two upstream projects in Venezuela -- San Cristobal and Carabobo-1 -- according to its website. OVL acquired a 40% stake in the San Cristobal oil field in 2008, with the remaining 60% owned by state-run PDVSA through its subsidiaries.

The Carabobo area is located east of the Orinoco oil belt, with ONGC Videsh holding an 11% stake and Indian Oil Corp. and Oil India each holding 3.5%.

"The developments in Venezuela offer three potential outcomes for Indian players. It offers a pathway for India to further diversify its crude sources and increase the heavy crude purchases to replace or supplement other heavy crude purchases," said Tushar Bansal, senior director at consulting agency Alvarez and Marsal. "It offers a pathway for ONGC and other upstream partners to realize their long-stuck dividends as well as monetize their stakes."

"And lastly, expected upstream developments in Venezuela could offer an exciting prospect for Indian players to increase stake and production in the medium to long term and provide energy security to the country," Bansal added.