Key facts
- India's crude oil imports from Venezuela reached 250,000 bpd in September.
- Reliance Industries accounted for 76% of these imports.
- Reliance's Jamnagar refinery is capable of processing 1.4 million bpd.
- Venezuelan Merey crude is offered at a discount of about $16 per barrel versus Dated Brent.
- India's imports from Venezuela could exceed 460,000 bpd this month.
Reliance Industries is spearheading a significant increase in India's crude oil imports from Venezuela, with September shipments reaching 250,000 barrels per day (bpd). The Indian conglomerate's Jamnagar refinery, the world's largest crude oil processing complex, is particularly suited to handle Venezuela's heavy crude.
Following a U.S. license to purchase crude directly from Venezuela and the gradual lifting of sanctions after Nicolas Maduro's capture in January, Reliance has substantially boosted its imports. The company accounted for 76% of the 250,000 bpd imported in September, according to Kpler data.
The attractiveness of Venezuelan crude is further enhanced by its pricing; the flagship Merey crude is offered at a discount of approximately $16 per barrel compared to Dated Brent. This contrasts with Russian flagship Urals crude, which carries a premium of about $10 per barrel.
Estimates from Kpler suggest that India's imports from Venezuela could nearly double this month to over 460,000 bpd, potentially marking the highest monthly volume since 2019, when U.S. sanctions were first imposed. Reliance Industries is also reportedly involved in plans to back the construction of a new refinery in Brownsville, Texas, a deal announced by President Trump in March.