Reliance May Resume Venezuelan Oil Imports If US Clears Sales to Non-US Buyers
Venezuelan Crude Oil: Reliance Industries is considering purchasing crude oil from Venezuela again. The company has stated that it will proceed in this direction if permitted to sell to non-US buyers. The company intends to resume purchases while complying with regulations. Reliance had suspended oil imports from Venezuela after the announcement of US tariffs in March 2025. Let's explore this in detail.
An important news related to Reliance has broken. Reliance Industries Limited (RIL), which has the world's largest refining complex, has made an important declaration on Thursday. The company declared that it will consider re-commencing purchases from Venezuela if it is allowed to sell to non-US customers. This declaration has surfaced when Venezuela and the US have recently signed a deal on oil exports.
A Reliance Industries spokesperson told Reuters, "We are awaiting clarity on access to Venezuelan oil for non-US buyers and will consider purchasing oil in compliance with regulations." Amid the Venezuelan crisis and the controversy surrounding oil purchases from Russia, the company's stance suggests it will take any action within the framework of geopolitical sanctions and US policies.
Media reports claim that an agreement was reached this week between Caracas and Washington, allowing Venezuela to export up to $2 billion worth of crude oil (approximately 30-50 million barrels) to the United States. This diplomatic shift comes after the US military detained Venezuelan President Nicolas Maduro on January 3. Following this development, global markets are closely watching whether other countries will also be allowed to purchase Venezuelan oil.
Want to get your story featured as above? click here!
Want to get your story featured as above? click here!
Venezuela has historically been an important source of crude oil for Reliance. However, the company stopped purchasing oil from Venezuela in March 2025. This was due to the US announcing a 25% tariff on countries purchasing crude from the South American nation. Reliance received its last shipment of Venezuelan oil in May.
Venezuelan oil proves to be quite lucrative for Reliance. Reliance's two refineries in Gujarat have a total processing capacity of approximately 1.4 million barrels per day. The complexity of these plants enables them to process Venezuela's cheap and heavy crude oil.
The fact that Reliance has the capability to handle heavy crude oil enables it to increase the gross refining margin (GRM) as the oil is available to it at a discount compared to other oils. The company is keeping an eye on the next step the US Government is likely to take. If the US Government relaxes the sanctions on non-US companies, then a long-existent route for the Indian refineries and for Reliance in particular could open up.
