Venezuela is preparing to send a larger volume of its crude oil to India. This movement follows Venezuela's oil trade changes which occurred after Venezuela established an oil agreement with the United States.
Use of Large Tankers
- Venezuelan oil traders first used Very Large Crude Carriers (VLCCs) to transport oil after the U.S.-Venezuela supply agreement entered into effect. These supertankers can each carry up to 2 million barrels of crude.
- Officials state that this change will enhance delivery operations to India. Large ships reduce transportation time and cost compared with smaller tankers.
Ships and Loading Plans
Three VLCCs — Nissos Kea, Nissos Kythnos, and Arzanah — have been assigned loading slots in March at the Jose oil terminal, which is run by Venezuela’s state-owned oil company PDVSA. These tankers are expected to head to India. Another large tanker, Olympic Lion, is also expected to load and sail soon.
India Is Buying Venezuelan Oil Again
- Indian refiners have resumed buying Venezuelan crude after the trade agreement with the U.S. was implemented. The return of Indian buyers was reported by multiple sources.
- State-owned Bharat Petroleum Corporation Ltd (BPCL) purchased Venezuelan heavy crude for the first time. Private refiner HPCL Mittal Energy Ltd (HMEL) also resumed Venezuelan oil purchases after a gap of two years. The companies purchased approximately one million barrels each.
Wider Trade Background
The recent increase in exports is part of a broader rebound in Venezuela’s oil shipments. Exports rose to around 800,000 barrels per day in January which exceeded the previous December figure of 500,000 bpd after U.S. sanctions were lifted and new trading agreements began.
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