U.S. Secretary of State Marco Rubio is set to engage India’s Reliance Industries in discussions aimed at expanding the company’s involvement with Venezuelan crude oil. During his visit to Mumbai, Rubio plans to explore the potential for Reliance to increase its processing of Venezuelan crude at its Jamnagar refining complex in Gujarat, which is one of the largest refining facilities in the world.
Reliance Industries has previously processed Venezuelan crude and possesses the technical capability to manage its heavy oil grades. The Jamnagar refineries boast a combined processing capacity of about 1.4 million barrels of crude oil per day. While the company currently imports Venezuelan oil, it does not have production operations in Venezuela. Rubio’s talks will focus on identifying obstacles and opportunities for Reliance to potentially start production activities in the South American nation.
This initiative comes as the U.S. and India are working towards finalizing a trade agreement. Recently, the U.S. administration decided to waive potential additional tariffs related to India’s purchases of Russian crude oil, which could aid in advancing trade negotiations. However, this decision has sparked criticism from some U.S. lawmakers who advocate for stronger economic measures against Russia due to its ongoing conflict in Ukraine.
Rubio’s visit also includes meetings with senior Indian government officials, such as External Affairs Minister S. Jaishankar, and business leaders, including Reliance Industries chairman Mukesh Ambani. These discussions are part of broader efforts by Washington to strengthen commercial ties with India and explore avenues for cooperation in Venezuela’s energy sector.
India’s reliance on imports for more than 85% of its crude oil needs underscores the importance of securing diverse and dependable energy sources. Expanding purchases of Venezuelan crude could offer additional supply options for Indian refiners. Furthermore, potential investment by Reliance in Venezuelan oil production could enhance bilateral energy cooperation between the U.S. and India.