The company has begun loading 2 million barrels of crude oil directly from Venezuela's state-run oil giant PDVSA, marking a major shift in sourcing strategy.

Strategic shift

According to shipping data and company documents, a Reliance unit has chartered a supertanker to load Merey heavy crude from Venezuela's Jose terminal. The cargo is expected to be shipped to India's Sikka port for refining.

This is a crucial development because only a limited number of companies have been allowed to directly purchase oil from PDVSA under US-regulated frameworks after recent geopolitical changes.

Why Reliance made this move

The timing of this deal is linked to the ongoing Middle East crisis. With tensions disrupting supply routes and pushing oil prices higher, Indian refiners are actively looking for alternative and more stable sources of crude.

Middle East supply routes like the Strait of Hormuz face uncertainty and oil prices have surged amid geopolitical risks. As India imports nearly 85% of its crude needs, by sourcing oil from Venezuela, Reliance is diversifying its supply chain and reducing dependence on volatile regions.

US approval

Reliance secured a US general licence in February 2026, allowing it to directly buy, export and refine Venezuelan crude without violating sanctions. Under this arrangement, oil revenues are monitored through US-controlled systems, and transactions must comply with strict guidelines.

Venezuela becomes key alternative

India's imports from Venezuela have already surged in recent weeks. Ship tracking data shows exports to India jumped sharply to over 3,00,000 barrels per day in March, highlighting renewed trade ties.