Venezuela has agreed to supply crude oil to India

The Secretary of Petroleum, Pankaj Jain, has announced that Venezuela has agreed to supply crude oil to ONGC Videsh Ltd (OVL) in place of pending dividend payments.

The Petroleum Secretary mentioned that they are currently awaiting the lifting dates for the oil supply.

This development follows the easing of sanctions on Venezuela’s oil sector by the United States in October. These sanctions were initially imposed to penalize President Maduro’s government after his re-election in 2018.

Earlier, Petroleum Minister Hardeep Singh Puri had stated that India intends to purchase Venezuelan oil, highlighting the capability of Indian refineries to process the heavy oil from Venezuela.

Puri further emphasized that New Delhi is open to resuming oil imports from any nation not under sanction. “We are currently facing a situation where we are consuming 5 million barrels of crude oil per day, and this demand is increasing daily. If Venezuela’s oil enters the market, we will gladly welcome it,” he added.

In 2020, India ceased importing Venezuelan crude due to the imposition of secondary sanctions by the United States. These sanctions were implemented as a punitive measure against Maduro’s government in response to his re-election in 2018.

South America is currently generating approximately 850,000 barrels per day (BPD) of crude oil, aiming to achieve a milestone of 1 million BPD in the near future.

India, a significant player in the global oil market as the third-largest importer and consumer, is actively undertaking a strategic endeavor to transform its energy sector.

Being heavily dependent on imported oil, which constitutes more than 80 percent of its requirements, India is determined to reduce its expenditure on crude imports while simultaneously enhancing its refining capacities.

India, with a keen interest in expanding its oil sources and enhancing its refining capabilities, is actively seeking collaborations and partnerships with Venezuela.