India plans to purchase oil from Venezuela following the lifting of sanctions against the Latin American country, according to Minister for Petroleum and Natural Gas Hardeep Singh Puri. He mentioned that India is open to buying oil from any country that is not under sanctions, and if Venezuelan oil becomes available, India would welcome it. Puri highlighted that several Indian refineries, including Indian Oil's Paradip unit, can process heavy Venezuelan oil. The move comes as part of India's strategy to diversify its sources of oil imports and secure supplies at competitive prices. The U.S. lifted sanctions on Venezuelan oil in October, prompting Indian refining companies to resume purchases.
Key Points:
1. India's Minister for Petroleum and Natural Gas, Hardeep Singh Puri, announced that India will purchase oil from Venezuela as sanctions against the Latin American country have been lifted.
2. Puri stated that India is willing to buy oil from any country that is not sanctioned, welcoming the opportunity to purchase Venezuelan oil if it becomes available in the market.
3. Several Indian refineries, including Indian Oil's Paradip unit, have the capability to process heavy Venezuelan oil, and the country is prepared to make purchases.
4. Puri highlighted the issue of Indian funds being locked up in Venezuela, citing ONGC's pending $500 million in dividends since 2014 related to its stake in Venezuelan oil and gas projects.
5. Indian refining companies, such as Indian Oil and Reliance Industries, have already started buying oil from Venezuela since the U.S. lifted sanctions in October, part of a strategy to reduce dependence on Russian oil.
6. Indian oil companies have increased purchases of Russian oil following the Ukraine war, as it is available at a discounted price, with Russia accounting for over one-third of India's oil imports.
7. India, as the third-largest consumer of oil globally, imports more than 80% of its crude oil requirements. Diversifying sources helps oil companies secure oil at lower prices.
8. Puri mentioned that Indian companies currently refine five million barrels of oil per day, and the country's refining capacity is increasing.
9. The move to purchase Venezuelan oil aligns with India's strategy to ensure a diverse and secure supply of oil from various global sources.
10. India's openness to buying oil from non-sanctioned countries reflects the country's efforts to navigate global energy markets while meeting its growing energy demand.
(With Agency Inputs)
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