Following the U.S. arrest of Venezuelan President Nicolas Maduro earlier this month, U.S. officials said Washington would ease sanctions imposed on Venezuela’s energy industry to allow for a $2 billion oil supply deal between Caracas and Washington and an ambitious $100 billion reconstruction plan for the country’s oil industry.
A general license authorizes the purchase, export, and sale of oil of Venezuelan origin that has already been extracted, including the refining of such oil.
Handing a license to Reliance could accelerate Venezuela’s oil exports and lower crude costs for the operator of the world’s largest refinery complex.
Reliance, which applied for the license in early January, did not respond to an email request for comment. The U.S. Office of Foreign Assets Control did not immediately respond outside regular business hours.
Venezuelan oil to replace Russian supply
Earlier this month, Reliance bought 2 million barrels of Venezuelan oil from trader Vitol, which, along with Trafigura, obtained U.S. licenses to market and sell millions of barrels of Venezuelan oil after Maduro’s capture.
The direct purchase of Venezuelan oil will help Reliance replace Russian oil in a cost-effective manner as heavy crude from Caracas is sold at a discount, one of the sources said.
President Donald Trump earlier this month removed a punitive 25 percent tariff on India and said New Delhi would buy more oil from the US and possibly Venezuela.
Indian refiners including Reliance are avoiding Russian oil purchases for April delivery and are expected to stay away from such deals for longer, refinery and trade sources say, a move that could help New Delhi strike a trade deal with Washington.
The conglomerate used to be a regular buyer of Venezuelan oil for its advanced refinery complex, but was forced to halt purchases in early 2025 due to US sanctions. Reliance operates two refineries with a combined capacity of approximately 1.4 million barrels per day.
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