The United States has issued a general licence to Reliance Industries Ltd that permits the company to buy, export and sell Venezuelan‑origin crude oil directly without violating existing sanctions, according to sources with knowledge of the development.
This licence comes amid recent geopolitical shifts, including the capture of Venezuelan President Nicolás Maduro, after which Washington signalled its intention to ease sanctions on Venezuela’s energy sector to support a $2 billion oil supply deal with the United States and a larger $100 billion plan to rebuild Venezuela’s oil industry.
Under the licence, Reliance can purchase Venezuelan crude that has already been extracted, transport it, and refine it at its own facilities. This authorisation is significant because it removes regulatory barriers that had previously prevented direct crude imports from Venezuela due to US sanctions.
The licence could enable Reliance to diversify its crude supply and potentially replace Russian oil with discounted Venezuelan heavy crude. Venezuelan grades often trade at a discount, which can reduce overall crude costs for refiners.
Earlier this month, Reliance bought 2 million barrels of Venezuelan oil through a trader — the first such purchase in nearly a year — after trading houses received US licences to market Venezuelan crude following sanctions relief.
The general licence reflects broader US policy changes on Venezuelan oil. Washington has moved to relax some energy sanctions in recent weeks, facilitating increased exports from the country’s battered oil sector and encouraging greater foreign involvement.
For India, the licence offers an opportunity to secure heavy crude supplies at competitive prices. Indian refiners have been shunning Russian oil purchases for April deliveries amid geopolitical tensions, which makes access to Venezuelan barrels strategically valuable.
Reliance’s Jamnagar refining complex, one of the largest in the world with a capacity of around 1.4 million barrels per day, is well‑suited to process heavy sour crude like that from Venezuela, boosting the economic appeal of the licence.
In summary, the US licence paves the way for Reliance to re‑enter Venezuelan oil markets legally and cost‑effectively, aligning with broader energy diversification efforts and evolving international oil geopolitics.
