Trader Vitol Sells Venezuelan Oil to Indian Refiners, According to Trade Sources

By Nidhi Verma and Marianna Parraga

NEW DELHI/HOUSTON – Two Indian state-owned refiners have purchased 2 million barrels of Venezuelan crude from trading house Vitol for delivery in November, according to trade sources. This increase in shipments marks a rise in exports to what was formerly Venezuela’s second-largest oil market.

Earlier this year, Indian refiners resumed their imports of Venezuelan crude after the U.S. Treasury Department approved transactions for crude and fuel exports, despite ongoing sanctions against President Nicolas Maduro’s regime.

Indian Oil Corp (IOC), the country’s leading refiner, is expected to take delivery of 1.2 million barrels of Venezuelan oil, while Mangalore Refinery and Petrochemicals (MRPL) will receive 800,000 barrels, sources familiar with the details stated.

Vitol, the U.S. Treasury, the Venezuelan state oil company PDVSA, IOC, and MRPL did not respond to requests for comments.

The batch of Venezuelan Merey 16 crude is scheduled to be transferred to MRPL aboard the vessel Boston, according to data from Kpler.

IOC’s Paradip refinery, which has a capacity of 300,000 barrels per day, can process Venezuelan oil, while MRPL has a limited preference for heavier grades like Merey and has seldom imported oil from Venezuela.

In July, India’s Reliance Industries received U.S. approval to resume Venezuelan oil imports. This agreement includes a swap for heavy naphtha, which is utilized by PDVSA’s joint ventures for diluting extra-heavy oil and producing grades suitable for export.

Last month, Reliance received a shipment of Venezuelan oil loaded onto the vessel Degas, as indicated by Kpler data.

Shipping documents reviewed reveal that the cargoes on the Boston and Degas tankers were claimed by PDVSA as sold to intermediaries rather than final buyers.

It remains unclear if Vitol possesses the necessary license or if it is reselling crude acquired from another licensed entity.

According to a shipping source, some of PDVSA’s joint venture partners, primarily located in Europe and holding U.S. licenses to transport Venezuelan oil, have resold portions of their cargoes to traders.