New Delhi, February 13 Mukesh Ambani's Reliance Industries Limited, a billionaire, has received a US general license to directly purchase Venezuelan crude oil, enabling India's largest private refiner to resume importing discounted heavy feedstock that aligns with its Jamnagar refinery configuration and optimizes refining margins.
Reliance, which operates the world's largest single-site refining complex at Jamnagar, Gujarat, was among international companies which in late January received a general license from the US for directly buying Venezuelan oil without violating sanctions, sources aware of the matter said.
Since capturing Venezuelan President Nicolas Maduro last month, the US has eased sanctions on the South American nation's energy industry to resume the flow of oil from the country that holds the world's largest reserves.
Reliance has not responded to requests for comments.
So far, the US has permitted the sale of Venezuelan oil through traders, but now a general license will give authorization to purchase oil directly from an entity that has already extracted it from the ground or is in possession of it.
Reliance was a regular buyer of Venezuelan crude before the US imposed sanctions on Nicolas Maduro's regime in 2019-20. It bought oil when the US introduced temporary sanctions relief in 2024. And when Venezuelan oil started flowing again through traders this year, it bought 2 million barrels from Vitol.
The window was also utilized by state-owned Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), who have jointly bought 2 million barrels (1.5 million barrels for IOC's Paradip refinery in Odisha and the rest 500,000 barrels for HPCL's Visakhapatnam unit in Andhra Pradesh).
Prior to sanctions, IOC was also a regular buyer of Venezuelan crude.
US President Donald Trump last week said Prime Minister Narendra Modi had agreed to stop buying Russian oil and purchase more oil from the US, and possibly Venezuela, following a key US trade deal with India. That agreement has led to the US dropping punitive 25 per cent tariffs imposed on Indian goods for the import of Russian oil.
Sources said tapping Venezuela is also part of India's efforts to diversify its crude sources. This comes at a time when imports from Russia are set to fall.
Venezuela's crude grades, especially from the Orinoco Belt, are predominantly heavy and extra-heavy. Reliance's Jamnagar refineries are among the world's most complex and geared toward efficiently processing heavy, sour crudes, which trade at a deep discount to international benchmarks due to production challenges and logistical constraints.
Buying Venezuelan oil will allow Reliance to optimize its refining margins because these barrels can be upgraded into higher-value products like diesel, kerosene and LPG that fetch strong demand in India and export markets.
Also, Reliance's business model is built on integrated refining-petrochemical operations. Heavy crude with high residual content can be broken down into valuable petrochemical feedstocks. Access to cheaper Venezuelan heavy crude supports better petchem margins when converted into polymers and speciality chemicals.