Indian refiner Reliance Industries Ltd. has obtained a basic license from the US authorities that may enable it to buy Venezuelan oil immediately, in accordance with an individual acquainted with the matter.
Reliance, owned by billionaire Mukesh Ambani, utilized for the allow final month and obtained it from the Treasury Division just a few days in the past, the particular person stated, asking to not be named because the matter will not be public.
The transfer comes instantly on the heels of a commerce cope with the US that slashes punitive tariffs for Indian exports however calls for that the nation cease importing discounted Russian oil. The Indian authorities has requested state-owned refiners to think about shopping for extra Venezuelan crude, in addition to oil from the US.
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Venezuela is unlikely to supply massive volumes of crude anytime quickly, however even restricted provides present a fallback choice for India’s largest refiner.
The US — which has stepped up involvement in Venezuela’s oil sector after capturing the nation’s president final month — has been contemplating basic licenses to allow purchases, buying and selling and funding in a sprawling however threadbare business. Reliance is the primary Indian refiner to obtain clearance within the present push.
Reliance has traditionally been an essential shopper of the nation’s heavy crude, having struck a time period deal to safe as a lot as 400,000 barrels a day from Petroleos de Venezuela SA in 2012. It’s amongst solely a handful of refiners in India which have the capability to course of the high-viscosity, bitter oil, which is troublesome to extract and refine with out diluent.
The Indian refining large took about 25% of Venezuela’s exports in 2019, earlier than its time period deal acquired suspended in 2019 attributable to US sanctions. It final obtained a basic license in 2024 and took crude till that expired final yr, and was not renewed.
Reuters first reported the issuance of the license earlier on Friday.
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