Key Takeaways
- US Secretary of State Marco Rubio plans to encourage Indian company Reliance Industries to refine more Venezuelan crude.
- The move is expected to pave the way for a trade deal between India and the US.
- Reliance's two massive refineries in Jamnagar can process ultra-heavy Venezuelan crudes.
US Secretary of State Marco Rubio has announced plans to encourage Indian company Reliance Industries to refine more Venezuelan crude at its local refineries, according to reports from Mumbai. Rubio, who landed in India’s financial capital, Mumbai, on a two-day visit, stated that Reliance has the capability to process Venezuelan oil, which has a sludge-like consistency.
During his visit, Rubio is set to meet with government and business leaders, including Foreign Minister S. Jaishankar and billionaire Mukesh Ambani, chairman of Reliance Industries. Rubio highlighted that Reliance has a significant presence in refining Venezuelan crude, with its two massive refineries in Jamnagar having a combined capacity of about 1.4 million barrels per day of crude oil.
Reliance has emerged as a major importer of Venezuelan crude as the country’s oil production has increased following the Trump administration’s capture of former Venezuelan leader Nicolas Maduro in January. Rubio noted that Reliance has the refining capabilities to process more Venezuelan oil, which is expected to come online in greater quantities.
Rubio also mentioned that the matter of Reliance potentially producing oil with Venezuela has been discussed in the past and may come up again during his visit. He stated, 'We are going to go see what the holdup is and what opportunities exist…this is a company that has had a presence in Venezuela in the past, and whose refining capabilities are substantial.'
The move by Rubio is part of efforts to pave the way for a trade deal between India and the US. The visit comes as Trump has waived potential tariffs on India for its extensive purchases of Russian crude oil, which had been a potential stumbling block for the trade deal.
While Reliance is a major refiner of Venezuelan crude, it is not active inside the South American country. Rubio’s visit is aimed at understanding the current situation and identifying opportunities for further collaboration.
The US lawmakers have criticized the Trump administration for being too soft on Moscow, but Rubio’s visit is seen as a step towards strengthening ties between the two countries. The comprehensive trade deal is almost complete, raising hopes for a significant improvement in bilateral relations.
We will talk about (refining more Venezuelan crude) tomorrow with Reliance…They have done so in the past, and I think as more and more of Venezuelan oil comes online, that is something they can do.
Marco Rubio, US Secretary of State
