US Secretary of State Marco Rubio is seeking to bolster energy cooperation between the United States and India by encouraging Reliance Industries to increase its involvement with Venezuelan oil. During his visit to Mumbai, Rubio plans to discuss with Reliance the potential for expanding its processing of Venezuelan crude oil and exploring opportunities for oil production in Venezuela.
Reliance Industries, which operates the Jamnagar refining complex in Gujarat, has previously handled Venezuelan crude and is technically capable of processing the heavy oil grades from the South American country. With a combined processing capacity of around 1.4 million barrels per day at its two Jamnagar refineries, Reliance is a significant player in the global oil refining sector, although it currently does not engage in oil production in Venezuela.
Rubio’s discussions with Reliance aim to identify potential challenges and opportunities for the company to deepen its involvement in Venezuela’s oil sector, which could include production activities. These talks are part of a broader effort to strengthen US-India trade relations and energy cooperation, particularly as the two nations are working toward finalizing a trade agreement.
The US administration has recently waived potential additional tariffs related to India’s purchases of Russian crude oil, a move intended to facilitate progress in trade negotiations. This decision has been met with criticism from some US lawmakers who advocate for increased economic pressure on Russia due to its actions in Ukraine. The administration has indicated that it will review its tariff policies in the coming weeks.
India’s reliance on imported crude oil, which accounts for more than 85% of its requirements, underscores the importance of securing diverse and reliable energy supplies. Enhancing its imports of Venezuelan crude could offer Indian refiners additional options, while Reliance’s potential investment in Venezuelan oil production could foster greater bilateral energy cooperation.
Rubio’s visit to India includes meetings with senior government officials such as External Affairs Minister S. Jaishankar and business leaders, including Reliance Industries chairman Mukesh Ambani. These discussions reflect the United States’ ongoing efforts to enhance commercial ties with India and explore opportunities for international partnerships in Venezuela’s energy sector.