2 million barrels deal: Indian Oil Corp, HPCL buy Venezuelan Merey crude for April
The cargo will be shipped on a single very large crude carrier (VLCC), with IOC lifting around 1.5 million barrels and HPCL taking about 500,000 barrels
- Feb 9, 2026,
- Updated Feb 9, 2026 3:48 PM IST
India’s state-run refiners have turned to Venezuela for fresh crude supplies as they recalibrate sourcing strategies. Indian Oil Corp and Hindustan Petroleum Corp have jointly purchased 2 million barrels of Merey crude for delivery in the second half of April, according to two trade sources familiar with the transaction.
The cargo will be shipped on a single very large crude carrier (VLCC), with IOC lifting around 1.5 million barrels and HPCL taking about 500,000 barrels. The shipment is scheduled to arrive on India’s east coast. The seller is commodity trader Trafigura, the sources said.
The deal signals a broader effort by Indian refiners to diversify crude imports as they reduce reliance on Russian supplies, a move seen as supportive of New Delhi’s efforts to advance a trade pact with Washington.
For HPCL, this marks its first purchase of Venezuelan crude. IOC, the country’s largest refiner, had previously processed Venezuelan oil in 2024, according to data compiled by Reuters. Indian companies typically do not comment on spot tenders due to confidentiality agreements. Trafigura declined to comment.
In January, HPCL had indicated it was seeking Venezuelan crude for its 300,000 barrels-per-day refinery in Visakhapatnam, Andhra Pradesh, which was recently upgraded to handle heavier grades. IOC earlier processed Merey crude at its Paradip refinery in Odisha.
The Merey cargo is priced against the Dubai benchmark and reflects rates similar to those at which Reliance Industries acquired Venezuelan oil from trader Vitol, one of the sources said. Reliance, which operates the world’s largest refining complex, bought 2 million barrels of Venezuelan crude for April delivery at a discount of roughly $6.50–$7 per barrel to ICE Brent, sources previously told Reuters.
Vitol and Trafigura were granted U.S. licences to sell Venezuelan oil following last month’s U.S. military operation to capture President Nicolas Maduro.
Traders and shipping data indicate that U.S. Gulf Coast refiners are struggling to absorb a rapid rise in Venezuelan shipments, leaving some volumes available in the market.
The purchase also comes as the U.S. and India move closer to concluding a trade pact. The two sides recently announced a framework aimed at lowering tariffs and strengthening economic ties, with a target to finalise the agreement by March.
While the joint statement on the trade framework did not specifically mention Russian oil, U.S. President Donald Trump rescinded 25% tariffs on Indian goods that had been imposed over Russian oil purchases, stating that New Delhi had “committed to stop directly or indirectly” importing Russian oil.
(With inputs from Reuters)
India’s state-run refiners have turned to Venezuela for fresh crude supplies as they recalibrate sourcing strategies. Indian Oil Corp and Hindustan Petroleum Corp have jointly purchased 2 million barrels of Merey crude for delivery in the second half of April, according to two trade sources familiar with the transaction.
The cargo will be shipped on a single very large crude carrier (VLCC), with IOC lifting around 1.5 million barrels and HPCL taking about 500,000 barrels. The shipment is scheduled to arrive on India’s east coast. The seller is commodity trader Trafigura, the sources said.
The deal signals a broader effort by Indian refiners to diversify crude imports as they reduce reliance on Russian supplies, a move seen as supportive of New Delhi’s efforts to advance a trade pact with Washington.
For HPCL, this marks its first purchase of Venezuelan crude. IOC, the country’s largest refiner, had previously processed Venezuelan oil in 2024, according to data compiled by Reuters. Indian companies typically do not comment on spot tenders due to confidentiality agreements. Trafigura declined to comment.
In January, HPCL had indicated it was seeking Venezuelan crude for its 300,000 barrels-per-day refinery in Visakhapatnam, Andhra Pradesh, which was recently upgraded to handle heavier grades. IOC earlier processed Merey crude at its Paradip refinery in Odisha.
The Merey cargo is priced against the Dubai benchmark and reflects rates similar to those at which Reliance Industries acquired Venezuelan oil from trader Vitol, one of the sources said. Reliance, which operates the world’s largest refining complex, bought 2 million barrels of Venezuelan crude for April delivery at a discount of roughly $6.50–$7 per barrel to ICE Brent, sources previously told Reuters.
Vitol and Trafigura were granted U.S. licences to sell Venezuelan oil following last month’s U.S. military operation to capture President Nicolas Maduro.
Traders and shipping data indicate that U.S. Gulf Coast refiners are struggling to absorb a rapid rise in Venezuelan shipments, leaving some volumes available in the market.
The purchase also comes as the U.S. and India move closer to concluding a trade pact. The two sides recently announced a framework aimed at lowering tariffs and strengthening economic ties, with a target to finalise the agreement by March.
While the joint statement on the trade framework did not specifically mention Russian oil, U.S. President Donald Trump rescinded 25% tariffs on Indian goods that had been imposed over Russian oil purchases, stating that New Delhi had “committed to stop directly or indirectly” importing Russian oil.
(With inputs from Reuters)