RIL receives licence from US to directly buy Venezuelan oil

NEW DELHI: Reliance Industries Ltd has received a general licence from the US to directly buy Venezuelan crude without violating sanctions.Those familiar with the development said the licence allows RIL to purchase, refine, export and sell Venezuelan-origin oil that has already been extracted.

They added Washington has granted similar licences to several entities globally, with RIL among them.Experts said granting the licence signals to Indian refiners to diversify energy purchases towards the US and Venezuela and reduce imports of Russian crude. The approval is likely to accelerate Venezuela’s oil exports and help refiners cut costs, as heavy crude from Caracas is sold at a discount. Venezuelan grades are typically heavy and sour, which can be processed at Reliance’s Jamnagar refineries.Reliance did not respond to requests for comment.Announcing the trade deal with India, US President Donald Trump linked tariff relief to India reducing Russian crude purchases and said Delhi should instead buy more oil from the US and potentially Venezuela. Caracas and Washington also reached a deal last month to export up to $2 billion worth of crude to the US. TNN