Reliance Wins US Licence for Venezuelan Oil, Sources Say

NEW DELHI/WASHINGTON: The United States has granted a general license to India’s Reliance Industries Ltd that will allow the refiner to buy Venezuelan oil directly without violating sanctions, two sources familiar with the matter said.

Following the U.S. capture of 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 reconstruction plan for the country’s oil industry.

A general license allows the purchase, export and sale, including refining, of previously extracted Venezuelan oil.

Granting a license to Reliance could boost Venezuela’s oil exports and reduce 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 emailed request for comment. The U.S. Office of Foreign Assets Control did not immediately respond outside normal business hours.

IT WILL REPLACE RUSSIA’S SUPPLY WITH VENEZUELAN OIL

Earlier this month, Reliance bought 2 million barrels of Venezuelan oil from trader Vitol; This, along with Trafigura, also received a US license to market and sell millions of barrels of Venezuelan oil following Maduro’s seizure.

A direct purchase of Venezuelan oil would help Reliance replace Russian oil cost-effectively as heavy crude from Caracas is sold at a discount, one of the sources said.

President Donald Trump earlier this month lifted a 25% punitive tariff on India and said New Delhi would buy more oil from the United States and potentially Venezuela.

Indian refiners, including Reliance, have refrained from buying oil from Russia for delivery in April and are expected to stay away from such trades for longer, refining and trading sources said; This move could help New Delhi seal a trade deal with Washington.

The conglomerate was a regular buyer of Venezuelan oil for its advanced refining complex but was forced to halt purchases in early 2025 due to US sanctions. Reliance operates two refineries with a combined capacity of about 1.4 million barrels per day.