Editor’s Note
This report details Reliance Industries’ reported license to import Venezuelan crude oil directly, a move that could reshape its import strategy and supply diversification efforts. The company has not officially confirmed the development.
In a significant development towards diversifying energy supply, Reliance Industries has reportedly obtained a US license to buy crude oil directly from Venezuela. According to sources, this permission will allow the company to import larger quantities without intermediaries. An official confirmation has not been made by the company.
Sources indicate that at the end of January, the United States granted limited permission to some international companies for direct purchases from Venezuela. This step is being viewed against the backdrop of recent changes in supply balance and trading arrangements in the global energy market.
From an operational perspective, Venezuela’s heavy-grade crude oil is considered suitable for the refining complex located in Jamnagar, Gujarat. Refining units with complex configurations can efficiently process heavy oil, which is likely to have a positive impact on margins. According to industry analysts, feedstock diversity increases flexibility in both cost control and product mix.
At the policy level, this trend is also seen as aligning with a broader import strategy. Market reports have indicated that Indian refineries are considering options to increase supply from various sources to mitigate the impact of price risks and geopolitical uncertainties.
In a historical context, after US sanctions on Venezuela in 2019, many countries limited imports from there. Venezuela, an OPEC member, is among the world’s large oil reserves, although its share in global supply has remained limited. Experts believe that partial easing of sanctions and a license-based system enables limited scope trade, provided compliance conditions are met.
Going forward, actual import volumes, price terms, and contract frameworks will be decisive. Clarity on regulatory compliance and payment mechanisms is expected to lead to phased imports.