Reliance Industries said to win US licence for Venezuelan oil

Direct purchase of Venezuelan crude oil will help Reliance replace Russian oil in a cost-effective way, as heavy crude from Caracas is sold at a discount.

The United States has issued a general licence to Reliance Industries Ltd. that will allow the operator of the world's largest refining complex to buy Venezuelan oil directly without violating sanctions.

Reliance Industries operates the world's largest oil refinery in Jamnagar. (Reuters)

Reliance Industries picked up two million barrels of Venezuelan crude from Vitol after wining the licence, sources said. The move could speed up Venezuela's oil exports and cut costs, as well as help the Indian refiner replace Russian oil in a cost-effective way, as heavy crude from Caracas is sold at a discount.

A general licence authorises the purchase, exportation, and sale of Venezuelan crude that has already been extracted, including the refining of such oil.

Following the capture of Venezuelan President Nicolas Maduro, US officials said Washington would ease sanctions imposed on Venezuela's energy industry to facilitate a $2 billion oil supply deal between Caracas and Washington and an ambitious $100 billion reconstruction plan for the country's oil industry.

Earlier in February, US President Donald Trump removed a 25% punitive tariff on India and said that New Delhi would buy more oil from the US and potentially Venezuela.

Indian refiners, including Reliance Industries, are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington.

The conglomerate used to be a regular buyer of Venezuelan oil for its advanced refining complex, but had to stop purchases in early 2025 due to US sanctions. Reliance operates two refineries with a combined capacity of about 1.4 million barrels per day.