U.S. Secretary of State Marco Rubio is urging India’s Reliance Industries to deepen its involvement in processing and potentially producing Venezuelan crude oil. During a visit to Mumbai, Rubio underscored the importance of expanding cooperation with Reliance, which operates the massive Jamnagar refining complex in Gujarat. This facility is one of the largest in the world and previously processed Venezuelan crude, making it well-suited to handle the heavy oil grades from the South American nation.
Reliance’s Jamnagar refineries boast a combined capacity to process around 1.4 million barrels of crude oil daily. While the company currently imports Venezuelan oil, it does not have oil production operations in Venezuela. Rubio’s discussions aim to identify and address potential challenges and opportunities for Reliance to increase its footprint in Venezuela’s oil sector, including possible production activities.
This visit is part of a broader effort by the United States to solidify trade ties with India, particularly in the energy sector. Washington and New Delhi are moving towards finalizing a trade agreement, a process that was recently aided by the U.S. decision to waive potential additional tariffs related to India’s purchases of Russian crude oil. This move has sparked criticism from some U.S. lawmakers advocating for stronger economic measures against Russia due to its ongoing conflict in Ukraine. The U.S. administration plans to review its tariff policies in the coming weeks.
During his time in India, Rubio is scheduled to meet with senior government officials, including External Affairs Minister S. Jaishankar, and business leaders like Mukesh Ambani, the chairman of Reliance Industries. This engagement highlights the strategic importance of India’s energy needs, as the country imports over 85% of its crude oil to fuel its growing economy. Access to diverse and reliable energy sources remains a key priority for India.
The potential increase in Venezuelan crude oil imports by India could provide additional supply options for its refiners. Furthermore, potential investment by Reliance in Venezuelan production could open new avenues for bilateral energy cooperation. These discussions are part of Washington’s broader strategy to strengthen commercial ties with India while exploring opportunities for U.S. companies and international partners in Venezuela’s energy sector.