Venezuela is preparing to export oil to India on a larger scale, marking a significant shift in international oil trade. In a related development, US oil company Chevron has sold Venezuelan oil to India’s Reliance Industries for the first time since 2023, highlighting renewed commercial activity between the two nations.
According to sources, Venezuelan oil exporting companies and trading houses have chartered very large crude carriers (VLCCs) for the first time. These ships can transport up to approximately 2 million barrels of oil at once, which will reduce transportation costs and enable faster oil supply. It has been learned that these large shipments will begin being sent to India from March.
Also Read | 126% US solar duty jolts Indian stocks: Waaree sinks 14%, Vikram Solar under pressure
Shipments, trade deals and India’s diversification strategy
This oil will be shipped from the Jose terminal operated by Venezuela’s state oil company PDVSA. Trading companies named Vitol and Trafigura have already booked several large tankers destined for India. This move is expected to further increase Venezuela’s oil exports.
Chevron resumes Boscan crude sales
At the same time, US oil company Chevron has sold Venezuelan Boscan grade oil to Reliance Industries. This is the first such deal since December 2023 and marks the resumption of international sales of this heavy oil after approximately six years. Reliance has purchased approximately 2 million barrels of Venezuelan oil for March and is also planning to buy oil directly from PDVSA.
Additionally, Indian oil companies such as Indian Oil, Bharat Petroleum, and HPCL Mittal Energy have also recently purchased Venezuelan oil. India’s goal is to diversify its oil sources and somewhat reduce dependence on Russia.
Also Read | Gold and silver prices rebound in Kolkata; silver surges ₹3,450 per kg
Oil exports rebound after sanctions
Venezuela’s oil exports have already increased to reach approximately 800,000 barrels per day. Previously, exports had declined due to US sanctions. With new agreements and permissions, Venezuela’s oil supply to the international market is now increasing again. According to experts, using large ships will make transportation faster and reduce costs, which may further increase Venezuela’s presence in Asian markets, including India.
