India adds new strategic moves to its energy policy. The state-owned Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) have jointly purchased two million barrels of Venezuelan crude oil. Venezuelan crude oil Merey through the Swiss trader Trafigura, with delivery scheduled for the second half of April.
Logistics and diversification in a single shipment
The cargo will be transported on a single VLCC (Very Large Crude Carrier) to the east coast of India. IOC will receive approximately 1.5 million barrels and HPCL the remaining 500,000 barrels. For HPCL, this is its first acquisition of Venezuelan crude oil, while IOC already has previous experience in refining this type of oil at its Paradip plant.
This agreement responds to the growing interest of Indian refiners to diversify their sources of supply, in the context of negotiations with the United States. Washington has pressured New Delhi to reduce its dependence on Russian crude oil. Russian crude oilThis has encouraged the exploration of alternative suppliers such as Venezuela, following the partial easing of sanctions on that country.
Adapted plants and economic advantages
HPCL’s newly upgraded Visakhapatnam plant has been designed to process heavy crudes such as Venezuelan Merey. This capacity adds to the operational flexibility of IOC, which has handled this same type of crude in previous facilities. The ability to access barrels at a discount to Brent has been another key factor in the transaction.
The deal is part of a growing trend in which traders such as Trafigura and Vitol, with existing U.S. licenses, are facilitating the return of Venezuelan crude to Asian markets. Reliance Industries has also been involved in similar deals recently, consolidating a trade channel that had been frozen for years.
Geopolitical context and growing reserves
Both the Indian companies involved and Trafigura have avoided commenting on the transaction, citing confidentiality agreements. Meanwhile, Venezuelan crude reserves in the Gulf of Mexico continue to grow, due to the limited US refining capacity for this type of blend.
The United States and India have made progress in formalizing a new trade agreement that seeks to strengthen bilateral economic cooperation. Although Russian crude oil is not explicitly mentioned in official communiqués, sources close to the process say that Washington expects a tangible reduction in such purchases as part of the understanding. New Delhi, however, has not announced changes in its import strategy from Moscow.
With this acquisition, India is redefining its oil balance among the global energy powers, while refineries such as IOC and HPCL are positioning themselves to face an international market in full reconfiguration.
Source: Reuters
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