Reliance caps Venezuelan oil purchases on pressure from US
HOUSTON/NEW DELHI: Reliance Industries Ltd, Venezuela’s top customer in India, has capped oil purchases from the Latin American country and halted selling diluent following US pressure to cripple President Nicolas Maduro’s government.
“Our US subsidiary has completely stopped all business with Venezuela’s state-owned oil company, PDVSA, and its global parent has not increased crude purchases,’ a Reliance spokesman said in an emailed statement. “In addition, since sanctions were imposed and contrary to some news reports, Reliance has halted all supply of diluent to PDVSA and will not resume such sales until sanctions are lifted.’
Reliance is India’s biggest private refiner, with a capacity of 1.36 million barrels a day. It imported about 270,000 barrels a day, or roughly 80% of India’s total oil imports from Venezuela in 2018, according to data compiled by Bloomberg.
I ndia replaced t he US t o become the biggest buyer of Venezuelan oil in February roughly one month after the US ratcheted up sanctions.
In March it’s expected to load five supertankers of Venezuelan crude —three for Reliance— down from seven in February, when the company took six, according to preliminary data from shipping reports and vessel tracking compiled by Bloomberg.
The nation’s private refiners—reliance Industries and Nayara Energy Ltd—are the primary buyers of Venezuela oil, because their advanced refining systems can process the thick Venezuelan grade into highvalue fuels such as gasoline, lowsulfur diesel and jet fuel.