Venezuela to supply crude oil to India in exchange for pending dividend

Venezuela to supply crude oil to India: In a significant development, Venezuela has agreed to provide crude oil to ONGC Videsh Ltd (OVL) in lieu of the pending dividend owed, as confirmed by Secretary Petroleum Pankaj Jain.

The move follows the US's easing of sanctions on Venezuela's oil sector in October, opening avenues for such agreements.

Awaiting Lifting Dates

The Petroleum Secretary stated, "They have agreed to give us some oil in lieu of its pending OVL dues. We are waiting for lifting dates," indicating a positive step in the ongoing negotiations between the two nations.

India's Readiness to Resume Oil Imports

Petroleum Minister Hardeep Singh Puri had previously expressed India's readiness to purchase Venezuelan oil, highlighting the capability of Indian refineries to process heavy oil from the South American country. Puri emphasised India's willingness to engage in oil imports with nations not under sanction.

Eased Sanctions and Potential Impact

The easing of sanctions on Venezuela's oil sector in October created an opportunity for India to resume imports. Puri noted that if Venezuela's oil becomes available in the market, India would welcome it, considering its growing demand for crude oil.

India's Energy Reshaping

India, as the world's third-largest oil importer and consumer, is actively reshaping its energy landscape. Seeking to reduce its crude import bill and enhance refining capabilities, India is exploring diverse sources, with Venezuela emerging as a potential collaborator.

Venezuela's Significance in Global Oil Industry

Venezuela, with a rich history in the global oil industry since 1914, boasts proven oil reserves of 299,953,000,000 barrels. Holding about 18.2% of the global total, Venezuela stands out as one of the leading holders of oil reserves globally.

India's Strategic Collaboration with Venezuela

With an eye on diversifying oil sources and strengthening refining capabilities, India is keen on exploring collaborations and partnerships with Venezuela. The agreement to supply crude oil in exchange for pending dues marks a significant step in this strategic journey.

This development signals a positive shift in India's energy partnerships, showcasing the nation's proactive efforts to secure diverse and reliable sources of crude oil.