Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Venezuela oil crisis deepens as Indian refiners halting imports

A sculpture, depicting an oil derrick in a hand, stands outside of the Petroleos de Venezuela SA (PDVSA) building ahead of government debt meetings in Caracas, Venezuela, on Monday, Nov. 13, 2017.
A sculpture, depicting an oil derrick in a hand, stands outside of the Petroleos de Venezuela SA (PDVSA) building ahead of government debt meetings in Caracas, Venezuela, on Monday, Nov. 13, 2017.

India’s largest private refinery halted purchases of Venezuelan oil, putting additional pressure on the Latin American country’s beleaguered oil industry.

Reliance Industries Ltd, which runs the biggest refinery in the world in Jamnagar and accounted for 25% of Venezuela’s exports last year, has no plans at the moment to make future purchases, according to people with knowledge of the situation who asked not to be identified because the information isn’t public.

It is the latest buyer to shun oil produced by the regime of Nicolas Maduro after U.S. refiners, China National Petroleum Corporation and Rosneft Trading SA cut off supplies amid sanctions on Venezuela’s oil sector.

The last time Reliance loaded a Venezuelan oil cargo was in March, and it received the cargo in May, data compiled by Bloomberg show. Reliance bought 117,650 barrels a day of Venezuelan crude this year, down 46% compared with last year, as the country’s oil production slumped. Since June, Venezuela has been shipping crude to China, Cuba, Spain and Italy. Cargoes to Europe are being used to settle old debts and don’t generate much-needed cash for the regime.

Nayara Energy Ltd, backed by Rosneft Oil Co PJSC, India’s second largest private refiner, also hasn’t loaded Venezuelan crude since March, data compiled by Bloomberg show. It turned to supplies from Canada, Kuwait and Ecuador to fill the gap, data from shipping reports show. A Nayara spokesperson said the company couldn’t immediately comment when contacted via email.

Reliance has been feasting on oil from the U.S., Colombia and Ecuador, the data show. Last year the Mumbai-based refiner resumed oil imports from Venezuela for payment in diesel, actions that were compliant with sanctions, it said. Reliance and Petroleos de Venezuela SA didn’t immediately return emails seeking comment.

Home to the world’s largest oil reserves, Venezuela has been struggling to sell cargoes after the last rounds of sanctions targeted maritime companies transporting its oil and Mexican traders Libre Abordo SA de CV and Schlager Business Group, the top buyers of oil produced by Caracas. Exports plunged to levels not seen in the past 73 years in May and are expected to fall further in June.

Recommended for you

More from Energy Voice

Latest Posts