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.

Share:

plateforme pétrolière au Venezuela

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

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.

The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.
The United Kingdom targets two Russian oil majors, Asian ports and dozens of vessels in a new wave of sanctions aimed at disrupting Moscow's hydrocarbon exports.
Major global oil traders anticipate a continued decline in Brent prices, citing the fading geopolitical premium and rising supply, particularly from non-OPEC producers.
Canadian company Petro-Victory Energy Corp. has secured a $300,000 unsecured loan at a 14% annual rate, including 600,000 warrants granted to a lender connected to its board of directors.
Cenovus Energy has purchased over 21.7 million common shares of MEG Energy, representing 8.5% of its capital, as part of its ongoing acquisition strategy in Canada.
In September 2025, French road fuel consumption rose by 3%, driven by a rebound in unleaded fuels, while overall energy petroleum product consumption fell by 1.8% year-on-year.
Société Ivoirienne de Raffinage receives major funding to upgrade facilities and produce diesel fuel in line with ECOWAS standards, with commissioning expected by 2029.
India is funding Mongolia’s first oil refinery through its largest line of credit, with operations scheduled to begin by 2028, according to official sources.
Aramco CEO Amin Nasser warns of growing consumption still dominated by hydrocarbons, despite massive global energy transition investments.
China imported an average of 11.5 million barrels of crude oil per day in September, supported by higher refining rates among both state-run and independent operators.
The New Vista vessel, loaded with Abu Dhabi crude, avoided Rizhao port after the United States sanctioned the oil terminal partly operated by a Sinopec subsidiary.
OPEC confirms its global oil demand growth forecasts and anticipates a much smaller deficit for 2026, due to increased production from OPEC+ members.
JANAF is interested in acquiring a 20 to 25% stake in NIS, as the Russian-owned share is now subject to US sanctions.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.