Author: Nidhi Verma and Jarrett Renshaw
NEW DELHI/WASHINGTON, Feb 13 (Reuters) – The United States has issued a general license to India’s Reliance Industries Ltd, allowing the refiner to buy Venezuelan oil directly without violating sanctions, two people familiar with the matter said.
After the U.S. captured Venezuelan President Nicolas Maduro earlier this month, U.S. officials said Washington would ease sanctions on Venezuela’s energy industry to facilitate a $2 billion oil supply deal between Caracas and Washington and an ambitious $100 billion plan to rebuild the country’s oil industry.
The general license authorizes the purchase, export and sale of extracted oil of Venezuelan origin, including the refining of such oil.
Granting a license to Reliance could speed up Venezuela’s oil exports and lower crude costs for the world’s largest refinery operator.
Reliance applied for the license in early January but did not respond to an email requesting comment. There was no immediate response from the U.S. Office of Foreign Assets Control outside regular business hours.
Venezuelan oil to replace Russian supplies
Reliance, which bought 2 million barrels of Venezuelan oil from trader Vitol earlier this month, joined Trafigura in obtaining a U.S. license to market and sell millions of barrels of Venezuelan oil following Maduro’s arrest.
One source said direct purchases of Venezuelan oil would help Reliance cost-effectively replace Russian oil as heavy crude from Caracas is sold at a discount.
President Donald Trump earlier this month lifted punitive 25% tariffs on India and said New Delhi would buy more oil from the United States and possibly Venezuela.
Indian refiners including Reliance Group are avoiding buying Russian oil for April delivery and are expected to stay away from such deals for longer, refining and trading sources said, a move that could help New Delhi seal a trade pact with Washington.
The group had been a regular buyer of Venezuelan oil for its advanced refineries but had to halt purchases in early 2025 due to U.S. sanctions. Reliance operates two refineries with a combined capacity of approximately 1.4 million barrels per day.
(Reporting by Nidhi Verma; Editing by Florence Tan and Saad Sayeed)
