Reliance eyes return of Venezuelan oil after imports halt in 2025: report

Directed by Mukesh Ambani Dependence Industries Limited is considering resuming purchases of Venezuelan crude oil, following a period of suspension that began in March 2025. The move comes after the United States announced a 25% tariff on oil-importing countries from Venezuela, prompting Reliance to suspend imports and receive its last delivery in May 2025, Reuters news agency reported. The development is being closely watched within the industry due to the potential implications for Reliance’s supply chain and refining operations.

Reliance operates two major refineries in western Gujarat with a combined processing capacity of around 1.4 million barrels per day. These facilities were designed to be complex, enabling the efficient processing of a range of crude types, including heavier, more profitable grades such as Merey from Venezuela. The company’s ability to process these crudes allows it to optimize its supply costs if Venezuelan oil becomes available again under acceptable commercial conditions.

The imposition of US tariffs led Reliance to make a strategic decision to halt its imports of Venezuelan oil, which had previously contributed to its operational flexibility. Since then, the company has focused on sourcing crude from alternative suppliers, while closely monitoring the evolving regulatory environment surrounding Venezuelan oil.

A Reliance Industries spokesperson told Reuters: “We are awaiting clarification on access to Venezuelan oil for non-U.S. buyers and will consider purchasing the oil in a compliant manner,” in response to a Reuters email seeking comment. This statement highlights the company’s commitment to adhering to international trade regulations and its intention to maintain compliance with all applicable guidelines.

The advanced configuration of Reliance’s refineries gives the company a distinctive advantage in processing heavier crudes, which often trade at a discount to lighter alternatives. Access to the Venezuelan Merey, in particular, has historically enabled Reliance to achieve favorable margins and optimize refinery production, thereby reinforcing the strategic importance of this potential supply source.

The cessation of Venezuelan oil imports in early 2025 marked a significant change in Reliance’s supply strategy. The company’s decision to suspend purchases closely followed the U.S. government’s imposition of a 25% tariff on countries that continued to import oil from Venezuela. These measures have led Reliance to adjust its sourcing policies and wait for further regulatory developments before reconsidering its position.

Currently, Reliance is closely monitoring any changes in the regulatory landscape that may affect non-US buyers of Venezuelan crude. The company continues to emphasize compliance with international standards, reiterating that future imports from Venezuela will depend on clear authorization from the competent authorities.

Venezuelan crude, which is typically priced $5 to $8 a barrel lower than Brent, can only be processed by a handful of refineries worldwide due to its heavy, sulfur-rich nature. In India, facilities such as Reliance Industries’ Jamnagar complex, Nayara Energy’s Vadinar refinery and Indian Oil Corporation’s Paradip plant are equipped to process this grade of crude.

Reliance Industries and ONGC could see a resumption of trade relations with Venezuela following new developments in the country’s oil sector, after the United States moved to assert control following the reported capture of President Nicolas Maduro on Saturday.

According to a note from global investment bank Jefferies, Mukesh Ambani-led Reliance and state-owned exploration company ONGC stand to gain if U.S. involvement leads to an easing of sanctions on Venezuelan crude exports. Such a move could reopen access to discounted oil supplies from Caracas.

Reliance was previously a major buyer of Venezuelan crude. In 2012, the company agreed to source about 20% of its daily crude needs from state-owned oil company PDVSA, but the deal ended in 2019 after U.S. sanctions were imposed on Venezuela’s oil trade.

“As the US indicates that Venezuelan crude could be offered to global buyers, Reliance may once again be able to secure supplies at a lower price than Brent, supporting its refining margins,” Jefferies said.