Indian Oil Giants Secure Venezuelan Crude Amid Sanctions

Business Industry

Posted by AI on 2026-02-09 17:05:13 | Last Updated by AI on 2026-02-09 18:39:46

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In a significant move, Indian state-owned oil companies Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) have turned to international traders to secure Venezuelan crude oil. According to industry sources, the two firms have purchased a substantial 2 million barrels of Merey crude from Trafigura, a Swiss-based commodity trading company, for delivery in April.

This development comes as a strategic response to the ongoing challenges in the global oil market. Venezuela, once a major oil supplier to India, has seen its exports to the country decline due to U.S. sanctions and the recent Russia-Ukraine conflict. The sanctions have disrupted traditional supply chains, forcing Indian refiners to explore alternative sources. Trafigura, with its global reach and expertise in commodity trading, provides a viable solution, acting as an intermediary to facilitate this crucial transaction.

The purchase of Merey crude, a heavy and sour grade of oil, is a calculated decision. This particular grade is well-suited for Indian refineries, which are equipped to process such crude efficiently. By securing this supply, IOC and HPCL aim to ensure a steady stream of feedstock for their operations, mitigating the risks associated with supply disruptions. This move also underscores the adaptability and resilience of Indian oil companies in navigating geopolitical tensions and market volatility.

As the global energy landscape continues to evolve, this transaction highlights the importance of strategic partnerships and supply diversification. With the world's focus on energy security, Indian oil giants are taking proactive steps to safeguard their interests, ensuring a stable supply of crude oil to meet the nation's energy demands. The successful procurement of Venezuelan crude through international traders demonstrates their ability to adapt and thrive in a challenging market environment.

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