Reliance open to Venezuelan oil purchases if sales to non-US buyers are cleared

Reliance Industries Ltd, which operates the world’s largest refining complex, has said it would consider buying Venezuelan crude if sales are permitted to non-US buyers, signalling potential interest from Indian refiners should restrictions ease.

In a response to queries, a spokesperson for Reliance said the company was awaiting clarity on access to Venezuelan oil for buyers outside the United States and would consider purchases “in a compliant manner” if such sales are allowed. Industry sources said state-run refiners, including Indian Oil Corporation and Hindustan Petroleum Corporation, would also evaluate Venezuelan crude under similar conditions, although the companies did not immediately comment.

The comments come at a time when India’s refining landscape is adjusting to evolving geopolitical and compliance risks. While some state-owned refiners and Nayara Energy are expected to continue importing Russian oil, Reliance has indicated it will not receive Russian crude in January, a move that could push India’s Russian oil imports to their lowest level in years.

Market analysts say the shift reflects refiners’ ability to adapt quickly to changing trade and regulatory environments. Reduced intake of Russian crude by major buyers such as Reliance suggests growing caution amid heightened scrutiny and potential sanctions-related risks.

Reliance halted purchases of Venezuelan oil last year after Washington and Caracas reached an understanding that limited exports, and after US policy changes made such trade commercially and politically challenging.

The company stopped buying Venezuelan crude from March 2025 following the announcement of a 25 per cent US tariff on countries importing oil from Venezuela, with its last cargo received in May that year.

Recent developments, however, have revived interest in Venezuelan supply. Caracas and Washington have reportedly agreed on the export of up to 30–50 million barrels of Venezuelan crude, valued at about $2 billion, to the United States, potentially reopening the door for Venezuelan oil to re-enter global markets.

Reliance’s twin refinery complexes in Gujarat, with a combined capacity of around 1.4 million barrels per day, are configured to process heavier and cheaper grades of crude, including Venezuela’s Merey. Analysts note that if Venezuelan barrels return to international trade, they are likely to be offered at a discount, improving feedstock flexibility and economics for compatible refiners, even if volumes remain limited.

Other Indian refiners, including HPCL-Mittal Energy, Nayara Energy, Indian Oil Corporation and Mangalore Refinery and Petrochemicals, have imported Venezuelan oil in the past, according to trade flow data. Analysts describe Venezuelan crude as a politically acceptable diversification option for India as it seeks to balance energy security with geopolitical pressures.

India has faced sustained pressure from Western nations to scale back purchases of Russian oil following Moscow’s invasion of Ukraine, amid concerns that energy revenues could be funding the war.

The United States last year raised tariffs on certain Indian goods, citing India’s continued imports of Russian crude, and fresh legislative moves in Washington signal that scrutiny of countries doing business with Russia is likely to continue.

With agency inputs