Reliance Industries, the conglomerate led by Indian billionaire Mukesh Ambani that is investing in a major US refinery project championed by President Donald Trump, has become the largest purchaser of Venezuelan crude oil outside of the United States. According to data from Kpler shared with CNBC, India is now the top destination for Venezuelan oil exports globally, excluding American markets, with Reliance accounting for the majority of those purchases.
Data indicates that in September, India imported 257,000 barrels per day of Venezuelan crude, with 76% directed to Reliance. The company’s Jamnagar refinery complex, which holds a processing capacity of 1.4 million barrels per day, is specifically configured to handle the heavy and extra-heavy grades of Venezuelan oil that are difficult to refine elsewhere.
“Reliance’s Jamnagar complex has been the main destination for Venezuelan crude in India, and we expect it to remain the primary buyer,” Sumit Ritolia, lead research analyst at Kpler, told CNBC. He noted that while these specific crude grades are not universally suitable across India’s entire refining system, Jamnagar is uniquely equipped for them.
The surge in Venezuelan oil purchases comes as President Trump has actively encouraged India to increase its imports of Venezuelan energy. This diplomatic push occurs against a backdrop of US legislative pressure regarding India’s continued acquisition of Russian oil. US lawmakers have granted Trump the authority to impose tariffs of up to 100% on nations purchasing energy from Moscow.
In March, Trump announced plans for the United States to build its first new refinery in 50 years, a project involving significant investment from Reliance Industries. While Reliance has not publicly confirmed the exact financial scale of the deal, Trump described it on Truth Social as a “historic $300 billion dollar deal.” Reliance remains India’s most valuable company, with a market capitalization exceeding $169 billion.
Despite the pressure to shift away from Russian supplies, Indian officials maintain that their energy procurement strategies are driven by national security interests. Ritolia observed that while Russian crude imports to India have moderated from their peak levels in June and July, this decline appears linked to competitive dynamics with China rather than tariff threats. Kpler data shows India remained the world’s largest importer of Russian crude in September at 1.82 million barrels per day, significantly ahead of China’s 1.49 million barrels per day.
Looking ahead, approximately 350,000 barrels per day of Venezuelan crude are slated for India in October, though some shipments may be delayed until November.
76% of India’s Venezuelan crude going to one company is massive concentration. Hope Jamnagar can sustain this throughput long-term.
India keeping Russian imports high while buying Venezuelan oil is a delicate balancing act. National security always trumps diplomatic pressure.
Is $300 billion for a single refinery realistic? Reliance’s market cap is only $169 billion. Seems like political hype, not economics.
Interesting pivot. Jamnagar’s unique setup clearly makes it the perfect sink for Venezuela’s heavy crude while US politics shift elsewhere.