Venezuela to Discuss Oil Sales with India Next Week

Venezuelan Acting President Delcy Rodriguez is expected to travel to India next week to discuss oil sales, United States Secretary of State Marco Rubio said. Rodriguez's visit comes as Venezuela has become India's third-largest crude oil supplier this month. Shipments from Venezuela to India are nearly 50 percent higher than they were in April, according to energy tracking data.

Nearly half of India's crude oil imports normally pass through the Strait of Hormuz. The route has become inaccessible amid the conflict around Iran, and Iranian shipments to India have stopped this month. Supplies from Saudi Arabia have nearly halved, falling from 670,000 barrels per day in April to about 340,000 barrels per day this month.

Indian officials have expressed concern over maritime security, with 13 Indian ships stranded in the region.

Venezuela holds an estimated 303 billion barrels of proven crude reserves, according to the US Energy Information Administration. The country produces less than 1 percent of global crude supply after years of US sanctions. Chevron remains the only major US oil company with substantial operations in Venezuela, producing about 250,000 barrels per day through joint ventures with the state oil company PDVSA.

ExxonMobil is reportedly nearing a deal to re-enter Venezuela.

Indian state-owned firms entered Venezuela in 2008. Before US sanctions intensified in 2019, Venezuela was among India's biggest oil suppliers. Venezuelan oil is particularly well-suited to Reliance Industries' giant refinery complex in Jamnagar, Gujarat.

Venezuela has supplied India with about 417,000 barrels per day so far this month, up from 283,000 barrels per day in April, according to Kpler data. Rubio, who will travel to India from May 23 to 26 for talks on trade, defence cooperation and energy security, said Washington wants to make sure India buys from the US and Venezuela instead of Russia.