Reliance Considers Purchasing Venezuelan Oil amid Changing Global Energy Dynamics

Reliance Industries is asking the United States for permission to start buying oil again from Venezuela, according to a Reuters report. This is happening at a time when India is facing pressure from the US to reduce its purchases of Russian oil.

According to the report Reliance officials are in talks with the US State Department and the Treasury Department to get approval. These discussions come as the US and Venezuela are negotiating a deal that could allow the shipment of about 50 million barrels of Venezuelan oil, following US' capture of Venezuelan President Nicolas Maduro.

In the past, US had given Reliance special licences to buy oil from Venezuela despite US sanctions. Under those approvals, Venezuela’s state oil company PDVSA supplied Reliance with four crude cargoes, around 63,000 barrels per day, during the first few months of 2025, Reuters said, citing internal PDVSA records.

However, the US suspended most licences for PDVSA’s business partners between March and April 2025 and warned countries buying Venezuelan oil that they could face tariffs.

Reliance’s last shipment of Venezuelan oil reached India in May 2025, and the company has now reportedly said that it would consider buying Venezuelan oil again if US rules allow sales to non-US buyers.

Earlier, US officials had said Venezuelan oil exports would remain under US control, though some oil could be sold outside the US with American supervision. US President Donald Trump had also said China would not be blocked from buying Venezuelan oil.

According to Reuters, Reliance is open to buying Venezuelan crude from US companies or other firms that have drilling rights in Venezuela, provided the oil is available at attractive prices.

Notably, Reliance has been biggest Indian buyer of Russian oil, while it had earlier denied reports claiming that the conglomerate received Russian crude this month despite US imposing 50% tariffs.

Reliance operates two large refineries in Gujarat with a combined capacity of about 1.4 million barrels per day (bpd). These refineries can process cheaper, heavier oil like Venezuela’s Merey crude.

Reliance and PDVSA have worked together for many years, and before US sanctions on oil trade, India was Venezuela’s third-largest oil market, buying about 400,000 bpd.