Defense News India :- Venezuela and ONGC Videsh Ltd (OVL) have reached an agreement where Venezuela will supply crude oil to OVL in exchange for pending dividends, as revealed by Secretary Petroleum Pankaj Jain. The awaited lifting dates for the oil delivery are currently pending confirmation.
This development follows the easing of US sanctions on Venezuela oil sector in October, initially imposed in response to the 2018 re-election of President Maduro government. Petroleum Minister Hardeep Singh Puri expressed India intention to purchase Venezuelan oil, highlighting the capability of Indian refineries to process the heavy oil from Venezuela.
Speaking at an event, Puri emphasized India willingness to resume oil imports with nations not under sanction. He stated, "India will buy Venezuelan oil. Many of our refineries, including one in Paradip, are capable of processing heavy oil from Venezuela. We are willing to resume (oil import) with anyone who is not under sanction."
India, the world third-largest oil importer and consumer, is actively reshaping its energy landscape to reduce reliance on overseas oil, which currently accounts for over 80% of its needs. The country is striving to curtail its crude import bill and enhance refining capabilities. In this pursuit, India has turned its attention to Venezuela as a potential source of diversification.
The South American nation, historically prominent in the global oil industry since 1914, possesses significant oil reserves, totaling 299,953,000,000 barrels as of 2016, representing approximately 18.2% of the global total. Venezuela aims to increase its crude oil production from the current 850,000 barrels per day (BPD) to a target of 1 million BPD.
India exploration of collaborations and partnerships with Venezuela aligns with its strategic goal of diversifying oil sources and strengthening refining capabilities. The move signifies a broader initiative by India to navigate its energy future amid evolving global dynamics.
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