Reliance Industries, the Indian refiner, has started loading 2 million barrels of Venezuelan crude oil directly sourced from the state oil company PDVSA, as reported by Reuters on Monday.
It seems Reliance is among a select few to obtain this general license. The U.S. has granted it permission to acquire Venezuelan oil while adhering to the existing sanctions on PDVSA. Other companies with similar licenses reportedly include Chevron, ExxonMobil, and Spain’s Repsol.
The license was issued to Reliance after the recent arrest of former socialist leader Nicolás Maduro during a law enforcement operation in Caracas, which was sanctioned by President Donald Trump. This event marked a shift towards cooperation between the Venezuelan government and the U.S., led by “acting president” Delcy Rodríguez.
According to Reuters, based on company docs and shipping details, the Bahamian-flagged supertanker that Reliance’s Delaware-based subsidiary RIL USA has chartered is now at PDVSA’s Jose terminal, Venezuela’s primary oil port located in Anzoategui, and it has begun loading a cargo of Meray, which is a blend of Venezuelan crude, headed for India’s Sikka port.
It’s worth noting that under the terms of the U.S. license, the revenue from these oil sales is managed by U.S. authorities through accounts overseen by the Treasury Department, and all commercial arrangements must comply with U.S. standards.
Bloomberg reported that India is poised to import the most Venezuelan crude oil it has in nearly six years to help offset oil from the Middle East amid ongoing war tensions there. Since around 90% of its crude oil is imported, India has been actively seeking alternatives due to disruptions in oil flow through the Strait of Hormuz, which carries nearly 40% of its oil supply.
Data from maritime information firm Kpler indicates that over 12 million barrels of Venezuelan oil are on their way to India. Kpler’s principal research analyst, Sumit Litria, suggested that the shipments for April were likely arranged prior to the recent Middle Eastern supply interruptions, highlighting a potential long-term strategic shift rather than merely a quick response.
Litria mentioned to Bloomberg that Venezuelan heavy crude oil typically has a higher concentration of middle distillates, particularly diesel and jet fuel, making it quite valuable in today’s market. Most of the Venezuelan crude heading to India is a blend, he added.
Bloomberg also reported on a tanker named “Integrity of the Ottoman Empire,” which has reached the Sikka port, marking the first Venezuelan cargo arrival in India in a year. This tanker was reportedly loading about 1 million barrels of asphaltic Bosca crude oil off the coast of Aruba. Supertankers bound for India are loading up more rapidly at the Jose terminal, which has helped increase overall crude oil exports.
Following Maduro’s capture, the Venezuelan government has started collaborating with the United States, sharing oil while seeking U.S. investment and aid to revitalize its struggling oil and energy sector in exchange for selling Venezuelan oil. Once a leading producer, Venezuela’s oil output has plummeted from over 3 million barrels per day to around 1 million, largely due to years of government mismanagement.
According to Reuters, Venezuela’s monthly oil exports exceeded 1 million barrels per day in March for the first time since the previous September, reflecting an uptick in oil sales and production since the new cooperation with the U.S. began. Documents from PDVSA reviewed by Reuters also show that tankers dispatched to India have been arriving at the Jose terminal, which accelerates port activity.
