Billionaire Mukesh Ambani-owned RIL operates the Jamnagar complex, the world’s largest and most complex single-site refinery, in Gujarat, capable of processing diverse and heavy crude oil. An email sent to RIL seeking comment remained unanswered.
Global refiners are currently eyeing Venezuelan crude after the US government eased sanctions on the country. Prior to the US sanctions imposed on Caracas in 2019, RIL and Russia-backed Nayara Energy were the top Indian buyers of Venezuelan crude.
Venezuela produces only about 0.8 per cent of the global crude output despite holding 18 per cent of the world’s oil reserves, reflecting years of underinvestment and infrastructure constraints. Until now, China and the US were the largest buyers of Venezuelan oil.
BPCL could process Venezuelan crude at its Kochi refinery in Kerala and Bina refinery in Madhya Pradesh while HPCL could refine the heavy crude at its Visakhapatnam refinery and the upcoming greenfield refinery in Rajasthan’s Barmer. Indian Oil has historically processed Venezuelan oil at its Panipat refinery.
Indian refiners are seeking steeper discounts on Venezuelan oil as its highly viscous and acidic nature makes it difficult to process. BPCL is looking at $10-12 per barrel discounts on Venezuelan oil, Business Standard had reported earlier.
