popular articles

India-Venezuela: Reliance Industries and PDVSA swap Naphtha for Oil

Reliance Industries concludes a strategic agreement with PDVSA to exchange naphtha for crude oil, optimizing their operations despite US sanctions.
plateforme pétrolière au Venezuela

Please share:

Reliance Industries, a key player in the Indian refining industry, has obtained special permission from the United States to resume trading with Petróleos de Venezuela, S.A. (PDVSA).
The agreement covers an exchange of naphtha for crude oil, a crucial arrangement for both companies.
Naphtha, a refined product supplied by Reliance, is used by PDVSA to dilute its heavy crude oil, making it easier to export. US sanctions had forced Reliance to suspend its purchases of Venezuelan oil, key for the Asian market, in April.
However, Washington granted a special license in July, allowing the company to resume this trade under strict conditions.
Reliance had submitted an application in May, which was accepted two months later.

Refining Operations Optimization

Reliance Industries operates the world’s largest refining complex, located in the state of Gujarat, with a processing capacity of 1.4 million barrels per day.
This capacity enables the company to process cheaper, heavy crude oils such as Merey from Venezuela.
The supply of naphtha, in exchange for crude oil, enables Reliance to maintain continuity in its operations while diversifying its sources of supply.
Reliance’s sophisticated refining infrastructure enables it to maximize profit margins, despite the challenges imposed by oil market fluctuations and international regulations.
The barter model adopted by the company demonstrates a strategic approach to overcoming regulatory constraints while ensuring operational stability.

Logistics challenges and regulatory context

Trade between Reliance and PDVSA faces a number of logistical challenges.
Venezuelan ports, often overloaded, cause delays in deliveries, affecting the supply chains of Asian importers of Venezuelan oil.
These delays, which can last up to 60 days, complicate the management of logistics flows for Reliance. The U.S. authorization obtained by Reliance remains valid, although subject to potential revisions depending on political developments in Venezuela.
The US authorities have clarified that individual licenses are not expected to be modified or withdrawn in the immediate future, providing a degree of stability to business operations between Reliance and PDVSA.

Challenges for the Energy Sector

The agreement between Reliance and PDVSA highlights the resilience of the energy sector in the face of international sanctions and logistical challenges.
The barter model implemented by Reliance could inspire other companies seeking to maintain business continuity while complying with regulatory constraints.
The adaptability demonstrated by industry players like Reliance is crucial to navigating a complex and rapidly changing global environment.
By seeking to diversify its sources of supply and optimize its processes, Reliance is showing the way forward for other companies in the energy sector.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Sinopec has identified over 140 mn tonnes of proven reserves in the Jiyang Basin, marking the largest certified shale oil discovery in China.
Boaz Energy II has completed the sale of its oil properties and trust units to T2S Permian Acquisition II, refocusing its operations while maintaining administrative continuity of the PermRock Royalty Trust.
Boaz Energy II has completed the sale of its oil properties and trust units to T2S Permian Acquisition II, refocusing its operations while maintaining administrative continuity of the PermRock Royalty Trust.
Offshore oil group Awilco Drilling PLC enters ex-dividend period on 1 April, marking the detachment of a USD 2.06 per share payment, amid significant cash returns to shareholders.
Offshore oil group Awilco Drilling PLC enters ex-dividend period on 1 April, marking the detachment of a USD 2.06 per share payment, amid significant cash returns to shareholders.
After several years of negotiations, Uganda officially signs an agreement to establish the Hoima oil refinery, a central project in the country's energy strategy aimed at reducing dependency on fuel imports.
After several years of negotiations, Uganda officially signs an agreement to establish the Hoima oil refinery, a central project in the country's energy strategy aimed at reducing dependency on fuel imports.
The Nigerian national oil company, NNPC, is finalizing the last steps toward its highly anticipated stock market listing, mobilizing investors and financial institutions for what promises to be a pivotal moment in Africa’s energy market.
Repsol’s Chief Executive said the company is exploring options with US authorities to remain active in Venezuela following Washington’s decision to end sanctions waivers.
Repsol’s Chief Executive said the company is exploring options with US authorities to remain active in Venezuela following Washington’s decision to end sanctions waivers.
CNOOC Limited has announced the discovery of the Huizhou 19-6 oilfield in the eastern South China Sea, with proven reserves exceeding 100 million tonnes of oil equivalent.
CNOOC Limited has announced the discovery of the Huizhou 19-6 oilfield in the eastern South China Sea, with proven reserves exceeding 100 million tonnes of oil equivalent.
PetroChina posts record net profit in 2024, driven by rising oil and gas volumes and expanded refining and distribution operations.
PetroChina posts record net profit in 2024, driven by rising oil and gas volumes and expanded refining and distribution operations.
EACOP has confirmed the closure of an initial tranche of external financing for its 1,443 km pipeline, as several NGOs urge participating banks to withdraw from the project.
Chinese oil group CNOOC Limited reported higher net profit for 2024, driven by growing reserves, record production and strict cost discipline.
Chinese oil group CNOOC Limited reported higher net profit for 2024, driven by growing reserves, record production and strict cost discipline.
The US Energy Information Administration reported an unexpected decline in crude oil inventories, reversing analysts' forecasts of an increase, with immediate effects on crude prices.
The US Energy Information Administration reported an unexpected decline in crude oil inventories, reversing analysts' forecasts of an increase, with immediate effects on crude prices.
Cut off from Iranian energy imports by Washington, Iraq accelerates commercial efforts in Africa while resuming oil exports through Turkey to quickly secure new economic and energy markets.
Cut off from Iranian energy imports by Washington, Iraq accelerates commercial efforts in Africa while resuming oil exports through Turkey to quickly secure new economic and energy markets.
Drydocks World has secured a contract to extend the operational life of the Baobab MV10 offshore platform in Côte d’Ivoire by 15 years through refurbishment and upgrade works.
Amid trade tensions with the United States, Canadian Prime Minister Mark Carney is reviving pipeline projects toward the Arctic to directly access European and Asian markets, diversifying Canada's oil exports.
Amid trade tensions with the United States, Canadian Prime Minister Mark Carney is reviving pipeline projects toward the Arctic to directly access European and Asian markets, diversifying Canada's oil exports.
According to Offshore Energies UK, Britain's oil and gas potential in the North Sea is limited by a tax regime that hinders investments needed to boost national production, increasing dependency on imports.
According to Offshore Energies UK, Britain's oil and gas potential in the North Sea is limited by a tax regime that hinders investments needed to boost national production, increasing dependency on imports.
US authorities have extended Chevron’s temporary licence to operate in Venezuela until 27 May, despite Donald Trump’s warnings of tariffs on imports from countries trading with Caracas.
US authorities have extended Chevron’s temporary licence to operate in Venezuela until 27 May, despite Donald Trump’s warnings of tariffs on imports from countries trading with Caracas.
Senator Yannick Jadot appears in court in Paris for defamation after accusing TotalEnergies of being “an accomplice to war crimes” due to its presence in Russia in 2022.
Shell Brasil approves the offshore Gato do Mato project development, targeting production of 120,000 barrels per day by 2029, further consolidating its position as Brazil’s leading foreign oil producer.
Shell Brasil approves the offshore Gato do Mato project development, targeting production of 120,000 barrels per day by 2029, further consolidating its position as Brazil’s leading foreign oil producer.
The Equatoguinean government has announced an immediate increase in fuel prices, citing outdated tariffs and budget constraints driven by a prolonged decline in oil exports.
The Equatoguinean government has announced an immediate increase in fuel prices, citing outdated tariffs and budget constraints driven by a prolonged decline in oil exports.
The South African government is intensifying efforts to exploit its vast oil and gas reserves to stimulate national economic growth and boost public revenue.
The South African government is intensifying efforts to exploit its vast oil and gas reserves to stimulate national economic growth and boost public revenue.
Ecuador has detected a new oil spill in a pipeline located in the Amazonian province of Napo, near its main hydroelectric plant, raising concerns over the country’s energy supply.
Iraq and the United Arab Emirates have submitted compensation plans to OPEC+ to offset their production surplus in February, amid falling crude prices and the gradual reduction of cuts planned for April.
Iraq and the United Arab Emirates have submitted compensation plans to OPEC+ to offset their production surplus in February, amid falling crude prices and the gradual reduction of cuts planned for April.
US commercial oil stocks increased by 1.7 million barrels last week, a figure higher than forecasts, according to the US Energy Information Administration (EIA).
US commercial oil stocks increased by 1.7 million barrels last week, a figure higher than forecasts, according to the US Energy Information Administration (EIA).
A fire damaged the Trans Niger Delta Pipeline in Nigeria, the country's main pipeline. The incident was swiftly controlled, although details of material and environmental damage remain unclear.
A fire damaged the Trans Niger Delta Pipeline in Nigeria, the country's main pipeline. The incident was swiftly controlled, although details of material and environmental damage remain unclear.

Advertising