Crude refiners like IOC’s Paradip refining factory and Reliance refinery have specially designed capability to process heavy sulfur grades of crude oil being imported from Latin America.
In the coming months, India’s state-owned refiners have started trade negotiations to buy huge volumes of Venezuelan crude. Even the private refining companies are a step ahead and have already snapped up multiple cargoes since the sanctions were lifted in October 2023.
Traditionally independent refiners from China have been the major buyers of South American crude. According to analysts, rising interest in Venezuelan crude by Indian companies is setting the stage for increased competition with China.
Oil ministry officials said state-run ONGC Videsh is awaiting formal dates to lift crude oil from Venezuela to offset dividend dues of $600 million accrued for its investment in an upstream project in the eastern part of the Latin American nation.
OVL, the overseas arm of domestic state-run explorer ONGC, picked up a 40% stake in the San Cristobal Field in Venezuela in 2008. Venezuelan state-owned PDVSA holds the remaining 60% stake in the project. OVL holds the stake in the San Cristobal project via ONGC Nile Ganga (San Cristobal) BV, a wholly-owned local subsidiary.
“Venezuelan authorities have agreed to give crude oil to India against OVL’s accrued dividend,” said an oil ministry official.
In 2017-18 (April-March), Venezuela owed OVL around $441 million in equity oil payments. The total dues to OVL included components, such as interest payments.
“We are awaiting the dates to lift crude cargoes from Venezuela,” Pankaj Jain, India’s petroleum secretary, said recently.
