Reliance eyes Venezuelan oil comeback after halting imports in 2025: Report

Mukesh Ambani-led Reliance Industries Limited is considering the prospect of resuming purchases of Venezuelan crude oil, following a period of suspension that began in March 2025. This decision comes after the United States announced a 25% tariff on countries importing oil from Venezuela, prompting Reliance to halt its imports and receive its last delivery in May 2025, news agency Reuters reported. The development is closely monitored within the industry due to the potential implications for Reliance's supply chain and refinery operations.

Reliance operates two major refineries in western Gujarat with a combined processing capacity of approximately 1.4 million barrels per day. These facilities have been engineered for complexity, enabling the efficient processing of a range of crude types, including heavier and cost-effective grades such as Venezuela’s Merey. The company's ability to handle these crudes positions it to optimise supply costs if Venezuelan oil becomes available again under permissible trade terms.

The imposition of the US tariff led to Reliance's strategic move to discontinue Venezuelan oil imports, which had previously contributed to its operational flexibility. Since that time, the company has focused on sourcing crude from alternative suppliers, while keeping a close watch on the evolving regulatory environment regarding Venezuelan oil.

A Reliance Industries spokesperson told Reuters: "We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner," in response to a Reuters email seeking comments. This statement underscores 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 compared to lighter alternatives. Access to Venezuelan Merey, in particular, historically allowed Reliance to achieve favourable margins and optimise refinery output, reinforcing the strategic importance of this potential supply source.

The cessation of Venezuelan oil imports in early 2025 marked a significant shift in Reliance’s sourcing strategy. The company’s decision to pause purchases followed closely after the US government’s imposition of a 25% tariff on countries that continued to import oil from Venezuela. These measures led Reliance to adjust its procurement policies and await further regulatory developments before reconsidering its position.

At present, Reliance is closely monitoring any changes in the regulatory landscape that may affect non-US buyers of Venezuelan crude. The company continues to emphasise compliance with international norms, reiterating that future imports from Venezuela will be contingent upon clear authorisation from relevant authorities.

Venezuelan crude, typically priced at a discount of $5 to $8 per barrel to Brent, can be handled by only a handful of refineries worldwide because of its heavy and high-sulphur 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 revival in business ties with Venezuela following fresh developments in the country’s oil sector after the US moved to assert control in the wake of President Nicolas Maduro’s reported capture on Saturday.

According to a note by global investment bank Jefferies, Mukesh Ambani-led Reliance and state-owned explorer ONGC stand to gain if US involvement leads to the easing of sanctions on Venezuelan crude exports. Any such move could reopen access to discounted oil supplies from Caracas.

Reliance had earlier been a major buyer of Venezuelan crude. In 2012, the company agreed to source around 20% of its daily crude requirement from state-run oil firm PDVSA, but the arrangement came to an end in 2019 after US sanctions were imposed on Venezuela’s oil trade.

“With the US indicating that Venezuelan crude could be offered to global buyers, Reliance may once again be able to secure supplies at a discount to Brent, which would support its refining margins,” Jefferies said.