Venezuela to supply oil to India in lieu of pending dividend

This comes after the US eased sanctions on Venezuela’s oil sector in October. The sanctions were imposed to punish Maduro’s government following his 2018 re-election…reports Asian Lite News

Venezuela has agreed to supply crude oil to ONGC Videsh Ltd (OVL) in lieu of the pending dividend, Secretary Petroleum Pankaj Jain said.

“They have agreed to give us some oil in lieu of its pending OVL dues. We are waiting for lifting dates,” the Petroleum Secretary said.

This comes after the US eased sanctions on Venezuela’s oil sector in October. The sanctions were imposed to punish Maduro’s government following his 2018 re-election.

Earlier, Petroleum Minister Hardeep Singh Puri said that India will buy Venezuelan oil, adding that Indian refineries are capable of processing the heavy oil from the South African country.

Speaking to reporters at an event, Puri stated that New Delhi is willing to resume oil import with any nation that is not under sanction.

“India will buy Venezuelan oil. Many of our refineries including one in Paradip are capable of processing heavy oil from Venezuela. We are willing to resume (oil import) with anyone who is not under sanction,” he had said.

“We are in a situation where we are using crude oil 5 million barrels/ per day. And it is increasing every day. If Venezuela oil comes to market we will welcome it,” he added.

India last imported Venezuelan crude in 2020 when the U.S. imposed secondary sanctions on the nation. The U.S. imposed harsh sanctions on Venezuela to punish Maduro’s government following his 2018 re-election.

The South American country is producing some 850,000 barrels per day (BPD) of crude with a target of soon reaching 1 million BPD.

India, the world’s third-largest oil importer and consumer, has embarked on a strategic journey to reshape its energy landscape.

As a nation heavily reliant on overseas oil, accounting for over 80 per cent of its needs, India aims to curtail its crude import bill and bolster its refining capabilities.

This pursuit has led India to explore diverse sources, and one country that has caught its attention is Venezuela.

Venezuela, a historical player in the global oil industry, has been producing oil since 1914. With proven oil reserves of 299,953,000,000 barrels, as of 2016, Venezuela stands as one of the world’s leading holders of oil reserves, representing about 18.2 per cent of the global total.

India, eyeing opportunities to diversify its oil sources and strengthen its refining capabilities, is keenly exploring collaborations and partnerships with Venezuela. (ANI)

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