Reliance Industries is leading a major rebound in Indian crude oil imports from Venezuela, with more than three-quarters of all purchases from the South American country going to India’s biggest private refiner.
Reliance Industries, owned by Indian billionaire Mukesh Ambani, operates the world’s largest crude oil processing complex at Jamnagar, which has the capacity to process 1.4 million barrels per day (bpd) of crude oil.
Following years of abstention from Venezuelan crude while U.S. sanctions were in place, Reliance has boosted imports from the world’s biggest crude oil reserves holder this year, following a U.S. license to buy crude directly from Venezuela being granted and the gradual lifting of the U.S. sanctions on Venezuela’s oil industry after the capture of Nicolas Maduro in January.
India’s crude oil imports from Venezuela hit 250,000 bpd in September, with Reliance Industries accounting for 76% of the shipments, according to data from Kpler shared with CNBC.
The Jamnagar refinery is particularly well suited to process Venezuela’s heavy crude oil, unlike some other refineries in India.
So Reliance Industries is boosting imports of Venezuelan crude, also because Venezuela’s flagship Merey crude is being offered at a discount of about $16 per barrel versus Dated Brent, compared to a $10 per barrel premium for the Russian flagship crude, Urals.
This month, India could be on track to nearly double its oil imports from Venezuela to more than 460,000 bpd, per Kpler estimates cited by Bloomberg. If all the tracked shipments en route to India manage to discharge before the end of the month, India could see its biggest monthly imports from Venezuela since 2019, when the Trump Administration first sanctioned Venezuela’s oil industry and exports.
Apart from boosting imports of Venezuelan crude, India’s Reliance Industries is involved in plans to back the construction of the first new refinery in the United States. In March this year, President Trump announced “a historic” deal to build a refinery in Brownsville, Texas, although the Indian conglomerate has not confirmed the size of its investment.
By Michael Kern for Oilprice.com
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