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India Buys Venezuelan Oil Amid Supply Shifts
19 Feb
Summary
- BPCL and HMEL made their first-ever Venezuelan crude purchases.
- Each refiner bought one million barrels of Merey crude.
- India's imports of Venezuelan crude will rise through April.
Indian refiners Bharat Petroleum Corp (BPCL) and HPCL Mittal Energy Ltd (HMEL) have initiated their first-ever purchases of Venezuelan crude oil. Each entity secured one million barrels of the Merey crude grade, a heavy oil, through separate transactions finalized with trader Vitol. These acquisitions mark a strategic diversification of India's energy sources.
This move comes as Indian refiners actively reduce their reliance on Russian oil imports, a shift that has also facilitated an interim trade agreement with the United States. HMEL had previously imported Venezuelan oil in February 2024, while BPCL's current purchase is its inaugural acquisition. The combined purchases by BPCL and HMEL are projected to increase India's total imports of Venezuelan crude to at least 6 million barrels through April.
To optimize logistics and reduce expenses, the acquired crude will be co-loaded onto a very large crude carrier. BPCL plans to discharge its share at Kochi and Sikka ports for its refineries in Kerala and Gujarat, respectively. HMEL will import its crude via Mundra port for its Bathinda refinery.
These developments align with broader international oil trade adjustments. U.S. refiners, including Valero Energy and Chevron, are also increasing their imports of Venezuelan crude. These purchases are made under licenses granted by the U.S., reflecting a broader supply deal between Venezuela and Washington.
