Venezuelan oil returns to the Indian market after 3 years: Hardeep Singh Puri

Petroleum Minister Hardeep Singh Puri said on Friday that India welcomes the return of this Latin American country to the oil market after the relaxation of sanctions imposed on Venezuela. Puri said some refinery companies in the country can process heavy crude oil produced in the Latin American country. He, however, did not say whether India had resumed purchases from Venezuela. India last imported crude oil from Venezuela in 2020.

The US Treasury Department partially lifted sanctions on Venezuela’s oil and gas sector in October. A six-month license has been granted to authorize transactions in the country’s oil and gas sector. This license will be renewed only if Venezuela meets its commitments for a fair vote in next year’s presidential election.

Venezuelan Oil: India will buy crude oil from Venezuela

Puri said, “We have always bought goods from Venezuela. When sanctions were imposed on Venezuelan oil, they were not in a position to supply.” He said several refineries, including Indian Oil Corporation (IOC)’s Paradip refinery in Odisha, are helping to process Venezuelan crude oil into fuels like petrol and diesel. Are capable. On the question of buying crude oil from Venezuela, he said, “We will buy.” Some Indian refiners have already ensured supply from Venezuela. Importing crude oil from Latin American countries will help diversify India, which is currently heavily dependent on West Asia and Russia.

India last imported Venezuelan oil in 2020 when the US imposed secondary sanctions on the country / The US had imposed harsh sanctions on Venezuela to punish Maduro’s government after the 2018 elections. The South American country is producing about 850,000 barrels per day (bpd) of crude oil and aims to reach 1 million bpd soon.

India, the world’s third-largest oil importer and consumer, has embarked on a strategic journey to reshape its energy landscape. India as a nation is heavily dependent on foreign oil and imports more than 80 percent of its needs. India aims to reduce its crude oil import bill and increase its refining capacities. In such a situation, India is planning to import Venezuelan oil.

Venezuela has been producing crude oil since 2014. As of 2016, there were 299,953,000,000 barrels of crude oil reserves. This country has the world’s largest crude oil reserves, where 18.2 percent of the world’s crude oil is present. India is exploring cooperation and partnership with Venezuela, with an eye on opportunities to diversify its oil sources and strengthen its refining capabilities. Also, read this.