In a statement that signals a major realignment of India’s energy sourcing, Reliance Industries confirmed it is “awaiting clarity” on whether non-U.S. buyers will be permitted to purchase Venezuelan crude under the new U.S.-managed marketing framework.
The move comes just days after U.S. forces captured Nicolás Maduro on January 3, 2026, leading the Trump administration to announce “indefinite control” over Venezuelan oil sales.
Why Reliance Needs Venezuelan Crude
For Reliance, this is an economic necessity rather than just a diplomatic shift. The Jamnagar refinery was specifically engineered to process “heavy-sour” crude grades like Venezuela’s Merey.
- The Margin Boost: Venezuelan crude typically trades at a $5–$8 discount to Brent. Experts estimate that regaining access to this supply could generate over $700 million in annual margin improvements for RIL.
- The Russian Pivot: Reliance recently announced it would not receive Russian oil in January 2026 due to heightened U.S. tariff risks (currently at 50% for heavy buyers of Russian crude). Venezuelan oil provides a “politically acceptable” alternative.
- Refining Edge: Only a few refineries globally can handle the acidic, sticky nature of Venezuelan oil; Jamnagar is the global leader in this capability.
Timeline of the Oil Relationship
The relationship between RIL and Caracas has been a rollercoaster of sanctions and shifting trade policies:
| Period | Status | Key Event |
| 2012–2019 | Major Partner | RIL sourced ~20% of its daily crude from Venezuela. |
| 2019–2024 | Sanctions Era | Imports plummeted as U.S. tightened the embargo. |
| March 2025 | Total Halt | RIL stopped buying after the U.S. 25% tariff on Venezuelan oil buyers. |
| May 2025 | Last Parcel | Final shipment of Venezuelan oil arrived in India. |
| Jan 2026 | “Awaiting Clarity” | RIL explores resumption under U.S.-led “AI Cloud” and marketing control. |
A Shift in the Indian Market
Reliance isn’t the only player watching the situation. State-run refiners including Indian Oil Corp (IOC) and Hindustan Petroleum (HPCL) have also indicated they will evaluate Venezuelan crude if the U.S. “greenlights” sales to non-U.S. companies.
However, the U.S. has already claimed the first 50 million barrels (valued at ~$2 billion) for its own domestic refiners, meaning Indian firms may have to wait for the second “tranche” of production later in 2026.
The “Compliance First” Approach
A Reliance spokesperson emphasized that any future purchases would be conducted in a “compliant manner.” With the U.S. currently enforcing a blockade on Russian-flagged tankers and monitoring global oil flows aggressively, RIL is treading carefully to avoid secondary sanctions or the new 50% “Russian Trade” tariffs.
“We await clarity on access for Venezuelan oil by non-U.S. buyers and will consider buying the oil in a compliant manner.” — Reliance Industries Spokesperson, Jan 8, 2026
