Reliance Drives India’s Venezuelan Oil Imports to Seven-Year High

Reliance Industries is spearheading a surge in Indian crude oil imports from Venezuela, with the majority of Venezuelan oil purchases going to India's leading private refiner. Owned by billionaire Mukesh Ambani, Reliance operates the world's biggest crude oil processing facility in Jamnagar, capable of handling 1.4 million barrels per day.

After years of refraining from Venezuelan crude due to U.S. sanctions, Reliance has ramped up imports this year following a U.S. license to buy Venezuelan crude and the easing of sanctions on Venezuela's oil sector after the arrest of President Maduro in January. Indian crude imports from Venezuela reached 250,000 barrels per day in September, with Reliance Industries handling 76% of the shipments, according to Kpler data provided to CNBC.

The Jamnagar refinery is particularly suited to process Venezuela's heavy crude oil, unlike some other Indian refineries. Reliance Industries is increasing its import of Venezuelan crude due to Venezuela's Merey crude being offered at a $16 per barrel discount compared to Dated Brent, versus a $10 per barrel premium for Russia's Urals.

India may import nearly double the amount of Venezuelan crude this month, reaching over 460,000 barrels per day, potentially marking the largest monthly imports from Venezuela since 2019, when the Trump Administration imposed sanctions on Venezuela's oil industry. Apart from boosting Venezuelan crude imports, Reliance Industries is also involved in plans to back the construction of the first new refinery in the United States, although the size of its investment has not been confirmed as of yet.