Will Reliance buy Venezuelan oil? ‘Await clarity on non-US buyers’ - here’s what the company said

Reliance Industries Ltd has said it may return to buying Venezuelan crude oil, provided sales are permitted to companies outside the United States. The conglomerate, which operates world’s largest refining complex, said that it is waiting for regulatory clarity before taking a decision.

“We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner,” a Reliance Industries spokesperson told Reuters.




Industry sources cited by the firm further added that state-run refiners Indian Oil Corp and Hindustan Petroleum Corp are also prepared to consider Venezuelan oil if non-US companies are allowed to purchase it.

Reliance had stopped buying Venezuelan crude last year in March, after US President Donald Trump announced a 25% tariff on countries purchasing oil from Venezuela. Its last cargo of Venezuelan oil was received in May last year.

After the capture of Venezuela President Maduro by US forces on January 3, Caracas and Washington agreed to allow the export of up to $2 billion worth of Venezuelan crude, estimated at 30 to 50 million barrels, to the US.

The company’s refining operations in Gujarat, with a combined capacity of around 1.4 million barrels per day, are designed to process heavier and cheaper crude grades, including Venezuela’s Merey oil.

“If Venezuelan barrels re-enter global markets, they are likely to come at a discount, improving feedstock optionality and economics for compatible refiners, even if volumes remain limited,” Sumit Ritola, lead research analyst, refining and modelling at Kpler was quoted as saying by Reuters.

According to LSEG trade flow data, several Indian refiners, including HPCL-Mittal Energy, Nayara Energy, Indian Oil Corp and Mangalore Refinery and Petrochemicals, have imported Venezuelan oil in the past. Ritola said Venezuelan crude could serve as a “politically acceptable diversification option” for India as it reassesses its energy sourcing.

Meanwhile, India has faced growing pressure from Western nations to reduce purchases of Russian oil following Moscow’s invasion of Ukraine, amid concerns that oil revenues could be supporting Russia’s war effort. Last year, the United States doubled tariffs on Indian goods to 50%, alleging that New Delhi's continued purchase of Russian oil fuels Moscow's 'war machine' in Ukraine.

Earlier on Wednesday, Trump cleared legislation intended to “punish” countries that continue doing business with Russia. While some state-owned refiners and Nayara Energy are expected to keep importing Russian crude, Reliance has said it will not take any Russian oil in January, a step that could drive India’s intake of Russian crude for the month to its lowest level in years.

“We’ve already seen that Reliance has reduced its intake of Russian crude, which indicates refiners are willing and able to adapt when compliance or trade risks rise,” Ritola said.