Reliance renews bid for US licence to import Venezuelan oil: Report
Before U.S. oil sanctions were first imposed on Venezuela, Reliance was the second largest individual buyer of Venezuelan crude after China’s CNPC.
Indian oil refiner Reliance Industries has resubmitted a request to the US for an authorisation to import crude oil from sanctioned Venezuela, three people close to the matter said, and resume oil trade between the OPEC producer and the once second-largest destination for its oil.
French oil producer Maurel & Prom separately on Monday said the US on Friday granted it a licence to conduct oil and gas operations in Venezuela for the next two years.
The US in April did not renew a general licence for Venezuela to export oil and fuel to its chosen markets, and gave 45 days to companies to wind down transactions. But the US had said some individual authorisations to foreign firms seeking to do oil business with Venezuela would be issued.
The licence had broadly eased Venezuela oil sanctions first imposed in 2019, moving to reimpose punitive measures in response to President Nicolas Maduro’s failure to meet his election commitments.
After the easing of sanctions in October, Reliance and other Indian companies that have business in the past with Venezuela previously applied to the US Treasury for individual authorisations. Those were not granted.
Indian refiners, however, resumed Venezuelan oil purchases through intermediaries. Since October, Reliance has chartered at least one supertanker to buy crude from state-run oil company PDVSA. It also received Venezuelan oil cargoes from third parties, according to internal PDVSA documents viewed by Reuters.
Before US oil sanctions were first imposed on Venezuela, Reliance was the second largest individual buyer of Venezuelan crude after China’s CNPC.
Reliance did not reply to a request for comment. The US Treasury Department declined to comment.
Maurel & Prom’s licence allows it to continue production activities under an agreement signed with Venezuela last November. Its licence is the first authorization issued by the US under the exemptions it offered last month to its reimposed sanctions regime on the South American country.
“It gives us clear visibility for the future,” M&P’s CEO Olivier de Langavant said in a statement. The company owns a 40% interest in an oilfield joint venture with PDVSA and has agreed to boost oil output in the field.
The US Treasury and State departments in recent years have received dozens of licence requests from firms interested in investing in Venezuela’s energy industry or importing Venezuelan crude or gas. Just a few of those individual requests have been approved, including a key licence to US oil major Chevron.
First Published: May 06 2024 | 10:18 PM IST