India’s Reliance Industries engages US officials for permit to resume Reliance Venezuelan oil purchases, potentially replacing Russian supplies under new sanctions regime.
India’s Reliance Industries is in discussions with the US State and Treasury departments for authorisation to buy Venezuelan oil. This move comes as Washington controls exports after capturing Venezuela’s President Nicolas Maduro. Reliance seeks to import heavy crude for its Gujarat refineries, amid pressure to cut Russian oil imports. The talks follow US suspension of licences in 2025.
This development holds significance for South Asia’s energy landscape. India, a major oil importer, faces volatility from global sanctions. Resuming Venezuelan supplies could stabilise refining operations and influence regional fuel prices. South Asian nations monitor such shifts, as they affect trade balances and energy security amid geopolitical tensions.
US Permit Venezuelan Oil: Key Negotiations
Reliance has approached US authorities for a specific permit. Sources indicate the company aims to comply with regulations allowing non-US buyers access. US officials plan to control Venezuelan oil exports indefinitely. Some volumes will flow to buyers outside the US.
A US Treasury spokesperson stated the department commits to supporting President Donald Trump’s efforts for Venezuela’s people. They declined comment on individual licences or requests. This aligns with recent OFAC amendments to general licences.
On 3 January 2026, President Trump announced secondary tariffs on countries importing Venezuelan oil. OFAC amended General Licence No. 5T on 19 December 2025. This delays certain authorisations until 3 February 2026. Such measures aim to manage oil flows post-Maduro.
Reliance’s interest stems from its refining capabilities. The company’s two Gujarat refineries process 1.4 million barrels per day. They handle heavy crudes like Venezuela’s Merey grade. This compatibility drove past imports.
India Resumes Venezuelan Oil: Historical Context
India resumes Venezuelan oil considerations after a pause. Reliance imported 63000 barrels per day from Venezuela in the first four months of 2025. This occurred under US licences. PDVSA, Venezuela’s state oil firm, delivered four cargoes during that period.
The last Venezuelan oil cargo arrived in India in May 2025. US suspended most licences between March and April 2025. Threats of tariffs followed. Reliance halted purchases to avoid penalties.
Pre-sanctions, India ranked as Venezuela’s third-largest crude market. Imports reached 400000 barrels per day. Reliance and PDVSA maintain a long-standing relationship. This history fuels current talks.
Reliance stated on 8 January 2026 it awaits clarity on access for non-US buyers. The company will consider purchases in a compliant manner. This positions Reliance to act if US permit Venezuelan oil becomes available.
Reliance Replaces Russian Oil: Strategic Shift
Reliance replaces Russian oil with potential Venezuelan supplies. The firm was India’s top buyer of Russian crude. However, no Russian cargoes arrive this month. This results from US pressure under Trump.
President Trump urges India to stop Russian imports. This aligns with broader sanctions on Russia. Venezuelan oil offers an alternative. It matches Reliance’s refining needs and could offset losses.
Venezuela holds millions of barrels in storage. Tanks and vessels store unsold crude. US-Venezuela talks aim to ship 50 million barrels. Proceeds stay under US control.
Companies like Chevron, Vitol, and Trafigura seek licences. They compete for Venezuelan oil control. Trump met oil executives on 9 January 2026 at the White House. Discussions focused on export concessions.
Reliance eyes purchases from US firms with Venezuelan drilling rights. This ensures compliance. Attractive pricing remains key. Venezuelan crude often sells at discounts.
Background
Venezuela’s oil sector faced US sanctions since 2019. These intensified under Trump. Maduro’s capture in early 2026 shifted dynamics. US now manages exports to fund humanitarian efforts.
India’s oil imports total over 4 million barrels per day. Reliance accounts for a significant share. Diversification reduces risks from Middle East suppliers. Venezuelan oil fits this strategy.
South Asia watches closely. Pakistan and Bangladesh import similar grades. Price fluctuations could impact regional economies. Energy ministers in the region discuss contingency plans.
What’s Next in Reliance Venezuelan Oil Talks
Negotiations may yield a US permit Venezuelan oil for Reliance soon. OFAC could issue waivers to trading firms. Reliance monitors developments for compliant deals.
India resumes Venezuelan oil if authorisations clear. This bolsters energy ties with Latin America. Reliance replaces Russian oil volumes, ensuring refinery output.
Observers expect announcements post-Trump’s executive meetings. Venezuela’s output could rise with foreign investments. Reliance Venezuelan oil flows depend on sanction relaxations.
Reliance Venezuelan oil pursuits signal adaptive strategies in global markets.
Published in SouthAsianDesk, January 10th, 2026
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