Trinidad and India Forge Oil Deal with Venezuela

Trinidad and Tobago has proposed a significant energy partnership with India, involving state-run ONGC Videsh Ltd (OVL) and Oil India Ltd. The plan centers on processing crude oil from neighboring Venezuela at the Guaracara refinery, located in Pointe-à-Pierre.

This refinery, part of the former Petrotrin complex, has been non-operational since November 2018 due to financial losses. Currently under renovation, its reopening is slated for this year, aiming to revitalize Trinidad's refining capacity.

The proposal emerges amid global energy market volatility. India, heavily reliant on crude oil imports, is actively seeking diverse energy sources. The US has also shown support for increased Venezuelan oil imports by India, particularly by Reliance Industries Ltd, which possesses heavy crude refining capabilities.

A crucial development enabling this potential collaboration is the US Office of Foreign Assets Control (Ofac) granting a general license in July for OVL's Venezuelan operations. This waiver facilitates framework agreements for further actions in the San Cristobal oilfield and opens avenues for dividend repatriation, which had been stalled due to sanctions.

Venezuela, possessing the world's largest oil reserves, has seen its oil flows resume following the lifting of US sanctions. In August of the current year, Venezuela emerged as India's fourth-largest crude supplier, with shipments averaging 383,000 barrels per day.