Ambani’s Reliance receives major relief from the US, license to directly purchase Venezuelan crude oil

New Delhi. Mukesh Ambani-led Reliance Industries Limited (RIL) has received permission to directly purchase Venezuelan crude oil from the US. This license will allow the company to import heavy crude oil at a discounted rate, which is expected to positively impact its refining costs and margins.

Imports halted due to sanctions
Direct purchases by Indian companies were halted after US sanctions imposed on Venezuela in 2019–20. Prior to this, Reliance had been a regular buyer of Venezuelan oil. Due to the sanctions, oil supplies were only possible through intermediaries, which complicated costs and logistics.

Why is this oil important for the Jamnagar Refinery?
Reliance’s refining complex in Jamnagar, Gujarat, is considered one of the largest refining complexes in the world. This plant is specifically designed to process heavy and ultra-heavy grades of crude oil.

Venezuela’s Orinoco Belt region is known for such heavy crude, which is technically suitable for this refinery.

US Grants Limited Permission

According to sources, the United States granted general permission to some international companies to purchase oil directly from Venezuela in late January.

Previously, due to sanctions, companies were only able to purchase through trading firms.

Reliance Has Purchased Before

Reliance imported oil from Venezuela during the temporary relief granted in 2024. Recently, when supplies resumed through traders, the company purchased approximately 2 million barrels of oil from the global trading firm Vitol.

State-owned companies like Indian Oil Corporation and Hindustan Petroleum Corporation Limited also took advantage of this exemption.

What could be the future impact?

Cheap heavy crude oil prices could improve refining margins.

Diversification of supply sources will strengthen energy security.

This could increase India’s bargaining power in the global oil trade.

Signs a shift in India’s energy strategy

Experts believe this move is part of India’s strategy to diversify its crude oil sources to reduce its dependence on any one sector.
Recently, US President Donald Trump also indicated that India is focusing on increasing oil imports from alternative sources.