Crude Oil Import: State-owned refiners IOC and HPCL have finalized a deal to purchase crude oil from Venezuela. Trafigura will supply 2 million barrels of Mere crude in April.

A ship loaded with crude oil will arrive in India from Venezuela in April, a major update on oil purchases after the trade deal.

Crude Oil Import: Following the trade deal between India and the United States, a major update is emerging regarding the purchase of crude oil from Venezuela. Indian Oil Corp. and Hindustan Petroleum Corp., two state-owned refiners in India, have jointly purchased 2 million barrels of crude oil. Delivery will take place in the second half of April. 

2 million barrels of crude will be divided between the two 

Citing sources, Reuters reported that the Meray crude purchased from Venezuela will be transported on a giant crude carrier. Of this 2 million barrels, IOC will take approximately 1.5 million barrels, and HPCL will take approximately 500,000 barrels. This carrier will depart from Venezuela and reach India's east coast. Trafigura is the supplier of the Venezuelan crude oil.

Following the trade deal with the United States, India is now trying to avoid importing Russian oil. Therefore, the purchase of oil from Venezuela represents an attempt by Indian refinery companies to diversify their imports to ensure a steady supply of crude oil despite the disruption in imports from Russia. 

India awaits crude oil supplies from Venezuela

This is HPCL's first purchase of crude oil from Venezuela. While the country's top refiner, IOC, already purchased oil from Venezuela in 2024. According to Reuters, HPCL said in January that it was awaiting supplies of Venezuelan crude oil for its refinery in Visakhapatnam.

HPCL's refinery has a capacity of 300,000 barrels per day, which the company plans to expand to 40,000-60,000 barrels per day. The refinery was recently upgraded to process heavy crude oil. IOC already processes Merey at its refinery in Paradip. Vitol and Trafigura were granted US licenses to sell Venezuelan oil.