India’s BPCL, HMEL Buy Venezuelan Crude Oil as Refiners Diversify Supply

According to industry sources, the private refiner HPCL Mittal Energy Ltd (HMEL) has purchased Venezuelan crude for the first time in two years, while the state-run Bharat Petroleum Corporation (BPCL) of India has made its first purchase of Venezuelan crude oil. By purchasing almost one million barrels of heavy Venezuelan Merey crude apiece, the two businesses have increased India’s imports of Venezuela to at least six million barrels through April. 

In order to save money on shipping, the purchases, which were made through trader Vitol, are anticipated to be co-loaded onto a very big oil carrier. While HMEL would receive its shipment at Mundra for the Bathinda refinery, BPCL intends to discharge its cargo at the ports of Kochi and Sikka for its refineries in Kochi and Bina. 

In an attempt to diversify their supply mix in the face of declining Russian oil shipments, Indian refiners are increasingly using Venezuelan crude, a move that also bolstered New Delhi’s temporary trade agreement with the US. Other refiners, such as Reliance Industries, Indian Oil Corporation, and HPCL, had previously sourced cheap Venezuelan barrels in recent years; however, HMEL stopped importing Russian oil in October. 

The action is part of India’s larger plan to control geopolitical risk and guarantee affordable crude supplies for its refinery industry. 

Source – Business Standard