Reliance Industries Ltd has received a general licence from the United States allowing it to directly purchase Venezuelan crude oil without violating U.S. sanctions, according to a report by Reuters, citing sources familiar with the matter.
The licence, issued by the U.S. Treasury’s Office of Foreign Assets Control, authorises the purchase, export, sale, and refining of Venezuelan-origin oil that has already been extracted. This development marks a significant shift in energy trade dynamics amid evolving geopolitical relations.
The move follows the reported capture of Venezuelan President Nicolás Maduro earlier this month. U.S. officials indicated that Washington would ease sanctions on Venezuela’s energy industry to facilitate a $2 billion oil supply deal between Caracas and Washington, along with a broader $100 billion reconstruction plan for the country’s oil sector.
Granting a licence to Reliance is expected to accelerate Venezuela’s oil exports while helping the Indian refiner lower crude procurement costs. Reliance operates the world’s largest refining complex and runs two refineries with a combined capacity of approximately 1.4 million barrels per day.
As per Reuters, direct purchases of Venezuelan heavy crude could help Reliance replace Russian oil in a cost-effective manner, as Venezuelan barrels are typically sold at a discount to global benchmarks.
Earlier this month, Reliance bought 2 million barrels of Venezuelan oil from trader Vitol, which, along with Trafigura, had been granted U.S. licences to market and sell Venezuelan crude following Maduro’s capture.
The report also noted that Indian refiners, including Reliance, are avoiding Russian oil purchases for April deliveries and may continue to stay away from such trades. The shift could support New Delhi’s efforts to strengthen trade ties with Washington.
U.S. President Donald Trump recently removed a 25% punitive tariff on India and stated that India would increase oil purchases from the United States and potentially from Venezuela.