Reliance files request with US government for importing crude oil from Venezuela

7 May 2024 , 02:19 PM

Reliance Industries, an Indian oil refiner, has resubmitted a request to the United States for permission to import crude oil from sanctioned Venezuela, according to three people familiar with the subject. In April, US reimposed sanctions on oil imports from Venezuela. But individual companies can apply for licenses to import oil from Venezuela if they do not want to violate US sanctions.

Maurel & Prom, a French oil company, announced separately on Monday that the United States granted it a two-year license to operate oil and gas activities in Venezuela.

In April, the United States did not renew Venezuela’s general license to export oil and fuel to its designated markets, and corporations were given 45 days to complete agreements. However, the US stated that some specific authorizations for international corporations desiring to conduct oil business with Venezuela will be issued.

The license had generally relaxed Venezuela’s oil sanctions, which had been imposed in 2019, before reimposing harsh measures in reaction to President Nicolas Maduro’s failure to deliver his electoral promises.

Following the relaxation of sanctions in October, Reliance and other Indian businesses that had previously conducted business with Venezuela sought to the US Treasury for individual authorization. They were not granted.

However, Indian refiners have resumed purchasing Venezuelan oil through intermediaries. Since October, Reliance has hired at least one supertanker to purchase crude from the state-owned oil giant PDVSA. It also received Venezuelan oil cargoes from third parties, according to internal PDVSA, as per sources.

Before the United States imposed oil sanctions on Venezuela, Reliance was the second-largest individual importer of Venezuelan crude, trailing China’s CNPC.

Maurel & Prom’s license allows it to continue producing under an arrangement made with Venezuela in November. Its license marks the initial issuance by the United States under the exemptions it recently granted within its reinstated sanctions framework concerning the South American nation.

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