IEW 2026 INTERVIEW: Indian Oil aims to boost US crude imports, open to Venezuelan supplies

Indian Oil Corp. will explore options to boost US crude imports while remaining open to evaluating purchases of Venezuelan oil when it becomes available, as the largest state-run refiner looks to accelerate diversification to strengthen energy security amid a shifting geopolitical landscape, Chairman Arvinder Singh Sahney said in an exclusive interview.

Additionally, IOC will continue to purchase economically competitive crude from a range of geographies, including Russia, on mutually agreeable terms, while strictly ensuring that all purchases comply with prevailing trade restrictions and sanctions, Sahney told Platts, part of S&P Global Energy, on the sidelines of India Energy Week in the western city of Goa.

"India's crude sourcing strategy follows a balanced portfolio approach, combining traditional suppliers with opportunistic sourcing from new regions through an optimal mix of term and spot contracts," Sahney said.

He added that IOC is open to increasing US crude purchases, provided these grades remain competitive relative to other global options, with future buying strategies guided by economics, logistics and refinery compatibility.

"During the current year -- 2025-26 (April-March), we have seen US crude imports for IOC increase from about 2% to nearly 7% of our basket, largely because US grades offered better value for our refining system and favorable arbitrage economics to our refineries," Sahney said.

Venezuelan crude an option

Sahney added that IOC is among the few refiners in India capable of processing Venezuelan heavy, high-sulfur crude within its system.

"In light of the recent developments, and subject to clarity on applicable regulations and international norms governing Venezuelan crude oil trade, IOC remains open to evaluating commercial opportunities from Venezuela," Sahney said.

"If Venezuelan crude becomes competitively priced and commercially accessible with requisite regulatory clearances, it will be assessed alongside other global crude supply options in line with IOC's diversification and energy security strategy," he added.

India imported about 300,000 b/d of Venezuelan-origin crude oil in 2019, but volumes fell to 25 million barrels for the entirety of 2024, according to S&P Global Commodities at Sea data. 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, CAS data showed.

Prior to the imposition of sanctions, Reliance Industries Ltd. was a leading buyer of Venezuelan crude in India. Grades imported by Indian refiners, such as Merey-16 and Hamaca, are typically classified as heavy crude.

"Russian crude purchases by Indian refiners should be viewed in the context of India's broader energy security strategy rather than as a shift away from traditional suppliers. While the Middle East continues to remain a cornerstone of India's crude oil imports owing to long-standing relationships, proximity and reliable term supplies, Russian crude has emerged as an additional option in a dynamically evolving global market," Sahney said.

He added that while conflicts or political instability in oil-producing regions can disrupt supply chains and cause price fluctuations, leading to price volatility, there was no cause for concern as IOC has a strategy in place to diversify its crude basket and shield itself from potential geopolitical risks.

"In the year gone by, we have introduced many newer grades -- mostly from the American and African continents -- into our refinery system, which we shall continue to evaluate in the future. IOC is also constantly upgrading its refinery capacity and technology to bring new crude oil grades into the basket to mitigate this risk further," Sahney said.

Petrochemicals a key focus area

Sahney added that IOC's oil strategy aims to future-proof its core refining and petrochemical base, with refining capacity set to expand to 98.4 million metric tons/year by 2028 from the current 80.75 million mt/y, driven by major brownfield expansions at the Panipat, Gujarat, Barauni and Digboi refineries.

"A parallel strategic thrust is on petrochemicals, a segment expected to account for over 10% of global oil demand growth and where India is emerging as a key consumption hub. IOC plans to raise petrochemical integration intensity from 6.1% to about 15% by 2030, increasing capacity from 4.3 million mt/y to over 13 million mt/y, with a growing share of high-margin specialty and value-added products," Sahney said.

While oil will remain essential to India's energy security, refinery decarbonization has become a strategic priority. Key measures include improving energy efficiency, switching fuels from liquid fuels to natural gas, increasing the use of renewable power, integrating compressed biogas, electrifying processes and progressively adopting green hydrogen, he added.

"IOC's role is to ensure that energy security, affordability and decarbonization progress go together. A central pillar of this strategy is the transformation of IOC's more than 40,000 retail outlets into future-ready energy stations, offering a full spectrum of energy solutions -- from conventional fuels to CNG, LNG, EV charging and emerging alternatives -- across highways, green expressways and urban centers," Sahney said.

He added that natural gas and LNG are being scaled up as critical transition fuels, aligned with India's goal of increasing gas' share in the energy mix to about 15% by 2030. IOC is expanding across LNG terminals, pipelines, city gas distribution networks and LNG dispensing infrastructure.

"Overall, IOC's transition strategy is pragmatic and forward-looking -- strengthening the core, systematically lowering carbon intensity and scaling new energy solutions in line with policy direction and market readiness. This balanced approach ensures that IOC continues to reliably power India's growth today while building resilience and relevance for a cleaner energy future," Sahney said.