Tapping into Latin America nations will assist India diversify its import basket, with industries like IOC and HMEL securing 4 million barrels of Venezuelan oil in February
“India, the world’s third largest oil consuming and importing nation, welcomes the return of Venezuelan oil to the market after sanctions on the Latin American nation were eased”, Petroleum Minister Hardeep Singh Puri mentioned.
Without saying if India has resumed purchases from Venezuela, he mentioned some refiners within the nation have the potential to course of heavy crude oil produced within the Latin American nation.
India final imported Venezuelan crude in 2020.
The U.S. Treasury Department in October partially lifted sanctions on Venezuela’s oil and gasoline sector. The partially lifted sanctions are by a brand new six-month license authorizing transactions within the nation’s oil and gasoline sector. The license is to be renewed provided that Venezuela can meet commitments main to honest voting within the subsequent 12 months’s Presidential Election.
“We always buy from Venezuela. We have always bought stuff from Venezuela. It’s when Venezuela came under sanctions that they were not able to supply,” Mr. Puri informed reporters.
He mentioned many refineries, together with Indian Oil Corporation’s (IOC) Paradip refinery in Odisha is succesful of processing the heavy Venezuelan oil into fuels comparable to petrol and diesel. “We will buy,” he mentioned.
Some Indian refiners have already secured provides from Venezuela. Tapping the Latin American nation will assist India additional diversify its import basket which at present is closely depending on the Middle East and Russia.
IOC, HPCL-Mittal Energy Ltd (HMEL) and Reliance Industries have reportedly secured 4 million barrels of Venezuelan oil for supply in February.
Venezuela produces round 8,50,000 barrels per day of crude and is focusing on to quickly attain 1 million barrels per day. India however imports 85% of its oil wants.
“We are willing to resume with anyone who is not under sanctions,” Mr. Puri mentioned.
“India consumes more than 5 million barrels of crude oil every day and the demand is only going up. So if Venezuelan oil comes into the market, we welcome it. So do all the others,” he added.
The minister additionally mentioned some Indian cash is locked up in Venezuela, referring to ONGC Videsh Ltd.’s about $413 million unpaid dividends from an oilfield in Venezuela.
India is hoping to get the caught a refund after the sanction easing.
ONGC Videsh Ltd., the abroad funding arm of state-owned Oil and Natural Gas Corporation (ONGC), holds a 40% stake within the San Cristobal oilfield in jap Venezuela’s Orinoco Heavy Oil belt.
The mission is operated collectively by OVL and Petróleos de Venezuela S.A. (PdVSA) – the National oil firm of Venezuela.
In November 2016, OVL and PdVSA signed two definitive agreements for the redevelopment of the mission. The agreements offered a mechanism to liquidate the excellent dividends of $537.63 million due to OVL.
OVL agreed to present loans of up to $60 million for implementing the remediation plan of the mission. Under the mortgage association, it offered a mortgage of $17.11 million and acquired half of the excellent dividend amounting to $124.81 million as of March 31, 2023, the supply mentioned, including that due to sanctions, these agreements had come to a standstill and steadiness dividend of $412.82 million was pending.
“The easing of sanctions will help get back the stuck dividends”, officers mentioned.
Also, the corporate is hoping to promote its share of oil from the sphere, which was 0.61 million tonnes in 2022-23, to whoever provides the perfect worth.
