The United States is in discussions with Reliance Industries to increase the volume of Venezuelan crude oil processed at its Indian refineries, US Secretary of State Marco Rubio said during his visit to India. Calling India a “refining superpower”, Rubio said Washington recognises New Delhi’s need to diversify its crude oil supplies and sees Venezuela as a potential source.
Rubio said Reliance had refined Venezuelan crude in the past and that discussions would explore opportunities to process more as supplies from the South American country increase. The talks could give India another option for meeting its substantial energy requirements amid changes in global oil trade and supply patterns.
Jamnagar Refinery at the Centre of Discussions
Reliance operates the Jamnagar refining complex in Gujarat, one of the world’s largest refining hubs. Its two refineries have a combined capacity of around 1.4 million barrels per day and are equipped to process heavy and ultra-heavy crude grades, including Venezuelan oil.
Venezuelan crude is typically heavy and high in sulphur, making it more difficult to process than lighter grades. Reliance’s refining capabilities give it an advantage in handling such supplies, while discounted prices can make the crude attractive when shipping and processing costs are taken into account.
India Looks to Diversify Crude Oil Supplies
India imports more than 85% of its crude oil requirements, leaving the country exposed to international price movements and supply disruptions. Diversifying suppliers can help refiners manage costs and reduce dependence on any single source.
India’s imports of Venezuelan oil have already increased. According to estimates cited by industry reports, deliveries were expected to rise significantly in October 2026, driven partly by discounted Venezuelan crude and changes in Russian oil supply economics. Actual import volumes may vary depending on cargo arrivals and market conditions.
US Also Raises Possibility of Venezuelan Oil Production
Beyond refining, Rubio said the possibility of Reliance participating in oil production in Venezuela could also be discussed. The company has had a presence in the country in the past but is not currently active in Venezuelan oil production, according to Reuters. No new production agreement was announced.
The discussions come as Washington seeks to influence global energy flows while advancing trade negotiations with New Delhi. The US has previously pressured India over Russian crude purchases, but recent policy changes and the push for a broader trade agreement have added complexity to the issue.
Energy Cooperation and Trade Ties
The talks highlight the overlap between energy security, commercial refining and India-US relations. For India, Venezuelan crude could offer an additional supply option, while the US sees a role for Indian refining capacity in processing more of Venezuela’s oil output.
Any expansion will depend on commercial terms, available supplies, shipping costs and applicable regulatory conditions. For now, the discussions indicate an effort to explore greater cooperation rather than a confirmed commitment by Reliance to increase purchases or begin oil production in Venezuela.
