India Eyes Venezuelan Oil as US Hints at a Green Light, Reliance and Other Oil Companies Eye the Opportunity
India’s oil sector is being careful with its excitement but at the same time quite happy about it. Reliance Industries, and state refiners IOC and HPCL, might soon be allowed to again import Venezuelan crude , but only under the strict supervision of the US. The US has given a hint that it is ready for non-US buyers such as India to start imports again, and this comes after the stunning capture of Venezuelan President Nicolás Maduro and US‑Caracas talks that are still going on.
After today’s Washington update, it was confirmed by the White House that a new US-controlled framework could soon bring down the barrier for India. According to the plan, the US will have intense control over the entire transaction of the oil, and the money will flow in a way that the US has a firm grip on it.
For Indian refiners, this is not just the crude oil shipped but a strategic move to be in the right energy mix, to get the best-priced oil, to have the upper hand in global politics, and all this while the ongoing operation of the refineries.
Reliance Seeks US Green Light to Snag Venezuelan Crude
Reliance is still not willing to act immediately , the company is taking the right approach. The private conglomerate states that it will take into account the possibility of going back to the Venezuelan oil market after the new US-controlled scheme has been approved and formal licenses have been issued.
“We are anticipating the detailed conditions related to access for parties outside the US,” a Reliance representative spoke to the media. “If it is all good, we will take the oil , through legal means.”
Reliance is negotiating with the US State and Treasury Departments, trying to get the right approvals. For India, it is a gamble with high stakes: on one side, there are the inexpensive Venezuelan barrels, and on the other, compliance with geopolitical rules. Who will lose their nerve first? Only a go-ahead from Washington can unravel it all.
India’s Refining Capacity And Historical Reliance
- Reliance’s two refineries in Gujarat have a combined capacity of 1.4 million barrels per day, ranking them among the largest in the world.
- The refineries are designed to process the heaviest and cheapest crude oils, such as Venezuela’s Merey, making them well-suited for Venezuelan crude.
- India, particularly Reliance, has historically been a major buyer of Venezuelan crude, importing around 400,000 bpd before US sanctions disrupted trade.
- The last Venezuelan crude import by Reliance was in May 2025, when US sanctions and tariffs significantly curtailed purchases.
- Analysts note that if Venezuelan crude returns to the market, it may be cheaper than usual, offering Indian refiners cost advantages and greater feedstock flexibility.
Other Indian Refiners And Market Implications
- Other Indian refiners that have historically imported Venezuelan oil include HPCL-Mittal Energy, Nayara Energy, IOC, and Mangalore Refinery and Petrochemicals (MRPL), according to LSEG trade data.
- Market Opportunity: Analysts, including Sumit Ritola from Kpler, note that if Venezuelan crude returns to global markets, it could be available at a discount.
- Benefits for Refiners: Discounted Venezuelan barrels could improve feedstock flexibility and economics for compatible Indian refiners, even if the imported volumes remain limited
US-Controlled Framework For Venezuelan Exports
According to the new framework, US officials have announced that the flow of Venezuelan oil exports would still be under the strict control of the US, and the proceeds as well as the shipping operations would be monitored to ensure that they do not interfere with the political and economic goals of Washington.
The US intends to sell between 30–50 million barrels of Venezuelan crude oil that has been stored, followed by continuous sales of future production. Although US officials have indicated that a portion of the barrels would be directed to non-US buyers, Chevron, Vitol, and Trafigura are also competing for export licenses along with the participation of non-US buyers. President Donald Trump pointed out that big purchasers like China would still be able to get the same barrels from Venezuela without being cut off.
Strategic Diversification From Russian Oil
India might soon swap a bit of Moscow for Caracas. With geopolitical pressure mounting to cut Russian oil, Reliance , historically the country’s top Russian crude buyer , has already said no Russian cargoes in January 2026, hinting at the lowest imports in years. Venezuelan crude could be a politically safe and economically smart alternative, letting refiners keep operations humming while diversifying the energy mix. Cheap barrels, fewer headaches, and smoother global optics , a win-win for India’s refineries.
(With Inpust From Reuters)
Also Read: US Opens Door For India To Buy Venezuelan Oil Under Tight Washington Controls,
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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