Reliance Industries (RIL) has been granted a general licence by the Donald Trump administration that will allow the company to crude oil directly from Venezuela without breaching any existing sanctions, a Reuters report has said.According to the report, this general licence permits the acquisition, export, and sale of oil sourced from Venezuela that has already been produced, as well as its refining. Reliance had submitted its licence application in early January.
Recently, US President Donald Trump removed the 25% punitive tariff on India and said that New Delhi would increase its purchases of oil from the United States and possibly from Venezuela as well.Earlier this month, after US authorities detained Venezuelan President Nicolas Maduro, officials in Washington indicated that sanctions on Venezuela’s energy sector would be relaxed. The move is intended to support a proposed $2 billion oil supply arrangement between Caracas and the United States, along with a broader $100 billion initiative aimed at rebuilding the nation’s oil infrastructure.
Venezuelan oil to replace Russian supply?
Issuing such approval to Reliance may accelerate Venezuela’s crude shipments while potentially lowering feedstock expenses for the company, which operates the world’s largest refining complex, the Reuters report said.
Earlier this month, Reliance bought 2 million barrels of Venezuelan crude from trading firm Vitol. The trader, along with Trafigura, had been given US approvals to market and sell large volumes of Venezuelan oil following the capture of President Nicolas Maduro.Buying Venezuelan crude directly would allow Reliance to substitute Russian supplies in a more economical manner, as heavy oil from Caracas is typically available at discounted prices, the report said.Also Read | Trump removes 25% penal tariff: What happens if India stops buying Russian crude oil?Refining and trading sources said Indian refiners, including Reliance, are refraining from securing Russian oil cargoes for April delivery and are likely to continue avoiding such deals for some time. Reliance has in the past been a consistent buyer of Venezuelan crude for use at its sophisticated refining facilities but suspended imports in early 2025 after US sanctions were imposed. The company currently operates two refineries with a combined processing capacity of roughly 1.4 million barrels per day.
