Indian Oil awaits sanctions relief extension to resume Venezuelan oil buy

NEW DELHI: India’s top refiner Indian Oil Corp will consider resumption of Venezuelan oil purchases if the US continues with a relaxation in sanctions against the OPEC-producer, the Indian company’s chairman said on Tuesday.

IOC is scheduled to get a cargo of Venezuelan oil next month, according to LSEG trade flow.

The refiner also got a parcel of Venezuelan oil last month.

“We will consider buying Venezuelan oil if the relief provided now stays and if Venezuelan crude makes commercial sense for us,” Shrikant Madhav Vaidya told Reuters.

The US last year relaxed sanctions on Venezuela’s oil industry until April 18 in return for promises to open its presidential election to international observers and the opposition’s preferred candidate, something that hasn’t happened.

LSEG data shows that Indian refiners- IOC and Reliance Industries Ltd - are not lifting Venezuelan oil in April.

If a license granted in October easing the sanctions is not renewed next month, state oil company PDVSA would probably return to using intermediaries to sell its oil to buyers such as China, likely at discounts.

India previously halted import of Venezuelan oil in 2020 after the US imposed sanctions, and resumed purchases only last year after Washington eased restriction on the South American nation’s oil sector for six months.