HPCL is exploring Venezuelan crude for the first time to strengthen heavy oil processing capability at its new refineries.
Its Barmer refinery in Rajsthan is expected to begin operations by month-end.
This comes as Indian refiners are diversifying crude sources amid reduced Russian oil imports, with reliance on alternatives like Venezuela.
State-run oil refiner Hindustan Petroleum Corporation Ltd (HPCL) is considering buying crude oil from Venezuela for the first time, as it looks to increase the flexibility to process heavier grades of crude at its new refineries.
HPCL Chairman and Managing Director Vikas Kaushal said the company is actively exploring Venezuelan crude, which it has not used earlier. “We are looking for Venezuelan oil, something we have not processed in the past,” Kaushal told reporters at a conference, as cited by Reuters.
1 January 2026
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He explained that HPCL is trying to build greater flexibility in its refining system after adding new facilities that can handle heavier crude oils. The company has recently commissioned new units at its Visakhapatnam refinery and is also preparing to start operations at its new Barmer refinery in Rajasthan. Both facilities are designed to process heavy and complex crude grades more efficiently.
The refiner expects to begin crude processing at its 180,000-bpd (barrels per day) Barmer refinery by the end of this month. Once operational, this will make HPCL India’s second-largest state-run refiner, overtaking Bharat Petroleum Corporation Ltd (BPCL) and ranking behind Indian Oil Corporation (IOC), the report said.
HPCL’s move reflects a broader effort by Indian refiners to diversify crude oil sources. Indian oil companies’ interest in Venezuelan crude has grown amid shifting global energy dynamics. Venezuelan oil is currently being offered by global trading firms Vitol and Trafigura under a US-mandated sale, following the detention of Venezuelan President Nicolas Maduro.
India has traditionally depended on Middle Eastern oil and, more recently, on discounted Russian crude. However, rising geopolitical pressures and sanctions have pushed refiners to explore alternative supply options.
The other major Indian player who is closely watching the US-Venezuelan crude developments is Reliance Industries. The company is reportedly seeking permission from US authorities to resume buying Venezuelan oil, as its refineries are also capable of processing heavy crude.
We had earlier reported that analysts believe Indian oil companies could benefit in the long term if Venezuelan supplies stabilise and global restrictions ease. In that previous report, we quoted Choice Institutional Equities, which noted that Indian upstream firms could gain from improved access to equipment and investments, potentially boosting output from Venezuelan oil fields like San Cristobal and Carabobo-1, which are jointly operated by Indian companies and Venezuela’s state oil firm PdVSA.
The brokerage added that refiners such as Reliance, BPCL, HPCL and IOC could benefit from importing heavier Venezuelan crude, which is usually priced at a discount to global benchmark Brent, allowing refiners to earn higher refining margins.
Notably, Indian refiners have been cutting back on Russian oil purchases. Data from analytics firm Kpler showed that India’s Russian crude imports were expected to fall to about 1.2 million barrels per day in December 2025, down from 1.84 million barrels per day in November, marking the lowest level since December 2022. The decline is linked to US sanctions on Russian oil firms Rosneft and Lukoil, EU restrictions, and growing pressure from the US during trade negotiations.
