India could deepen energy ties with Venezuela beyond crude imports: Rubio

Indian companies could play a larger role in Venezuela's energy sector as the country's oil production increases, importing more of its heavy crude for processing while exploring new opportunities to invest in upstream projects, US Secretary of State Marco Rubio said Oct. 20.

Speaking ahead of a meeting with Reliance Industries Ltd.'s executives at the company's Jamnagar refining complex, Rubio said India's extensive refining capacity positions it well to process additional Venezuelan crude as production increases, according to a US State Department statement.

"They have the capability to refine heavy crude. They've done so in the past, and I think as more and more Venezuelan oil comes online, it's something they can do," Rubio said, referring to Indian refiners.

Rubio added that energy cooperation is both an economic and a national security issue. Refining capacity is essential for turning crude into usable energy, while reliable energy supplies are critical to economic stability.

India imported about 300,000 barrels/day of Venezuelan crude in 2019, but volumes have since declined to about 25 million barrels in 2024. In 2025, five VLCCs — one per month — discharged Venezuelan crude at the Port of Sikka, according to S&P Global Commodities at Sea data.

However, volumes have grown steadily this year. A total of 13.6 million barrels of Venezuelan-origin crude, including in-transit volumes, is expected to be discharged at Indian ports in October, after 10.2 million barrels were discharged in May, CAS data showed, highlighting a sharp near-term increase in flows. Completed inflows of Venezuelan crude to India have averaged 190,000 b/d so far this year, with 80% of the volume delivered to Sikka port.

Ties with Reliance, state refiners

Benjamin Tang, head of liquid bulk at CAS, said Reliance is the largest buyer of Venezuelan crude and is likely to remain central to any US effort to expand Venezuela-India oil trade, given its refinery configuration and ability to process heavier grades. However, further growth may be limited by India's relatively modest heavy-crude processing capacity, with only a small number of refineries equipped to handle grades such as Merey-16.

Rubio also highlighted the potential for India's role in Venezuela's energy sector to expand beyond crude imports. He said Indian companies have previously held oil concessions in Venezuela and could increase production there, creating opportunities for investment in exploration and production, as well as refining.

"So, all these are positive things. We talked about it in the past. They're ready to do it, they're willing to do it," Rubio said.

Indian state-run oil companies entered Venezuela in 2008 to secure heavy crude resources and diversify their upstream portfolios. Oil and Natural Gas Corp.'s overseas arm, ONGC Videsh, holds a 40% participating interest in the San Cristobal project through its subsidiary ONGC San Cristobal BV, according to the company's website. The project is a joint venture with Venezuela's state-owned oil and gas company PDVSA, under Petrolera Indovenezolana SA.

In 2010, ONGC, along with Indian Oil Corp. and Oil India Ltd., participated in the Carabobo-1 project located in the Orinoco Belt. ONGC Videsh holds an 11% equity in the project, while IOC and Oil India hold a combined 7% stake through their 50-50 joint venture, IndOil Netherlands BV, according to the ONGC Videsh website and S&P Global Energy.

Rubio said discussions with Reliance would focus on understanding the company's current position and assessing potential crude oil production opportunities in Venezuela.

"Reliance may be willing to buy more Venezuelan crude, but experience of Indian national oil companies suggests that moving from crude buyer to upstream investor requires confidence not in the resource base, but in the durability of the aboveground framework," said Mansi Anand, principal analyst for research on national oil companies at S&P Global Energy CERA.

US oil can fill vacuum

Rubio said New Delhi has made substantial progress in diversifying its energy portfolio, although he acknowledged that shifting supply sources cannot happen immediately.

He added that a broader range of suppliers — including Venezuela, the US and other producers — will strengthen India's energy security in the future.

During a meeting in Mumbai with Indian Minister of External Affairs S. Jaishankar, Rubio said increased US-India energy trade could help diversify India's supply chains and meet its substantial consumer demand. The two sides also discussed broader cooperation in areas including defense, civil nuclear technology, semiconductors, critical minerals and energy, according to another US State Department statement Oct. 20.

The potential for expanded oil cooperation comes as the US and India pursue broader commercial ties. Bilateral trade has exceeded $240 billion, with the two countries aiming to raise that figure to more than $500 billion over the next three years, the statement said.

US crude oil flows to India averaged about 149,000 b/d in 2024, marked by a strong midyear surge followed by a second-half pullback. Flows were generally stronger but more uneven in 2025, averaging about 238,000 b/d, according to CAS data.

However, US crude flows to India weakened in 2026, averaging 128,000 b/d over January-October — roughly 43% below the 2025 average for the same period, CAS data showed.