Indian refiners Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) have jointly acquired 2 million barrels of Venezuelan crude oil from global trader Trafigura, marking a notable development in India’s crude sourcing strategy.
Under the transaction, IOC is set to receive 1.5 million barrels of Merey crude, while HPCL will take delivery of 500,000 barrels. The cargo is expected to reach India’s east coast by late April 2026 aboard a single very large crude carrier.
This marks HPCL’s first purchase of Venezuelan crude, while IOC has previously engaged in similar acquisitions. The deal strengthens efforts by Indian refiners to diversify their crude import base amid evolving global supply dynamics. HPCL plans to process its share of the crude at its upgraded 300,000-barrel-per-day refinery in Visakhapatnam, while IOC will use its portion at the Paradip refinery.
The crude is priced against the Dubai benchmark, aligning with pricing structures used in recent Venezuelan oil purchases by Indian refiners and traders. India’s move comes as global geopolitical shifts including regulatory changes in the United States that have enabled trading houses to secure licences for Venezuelan oil sales have reopened opportunities to access South American heavy crude grades.
Analysts say the purchase reflects both commercial considerations and India’s ongoing efforts to broaden its energy supply sources. Venezuelan crude, known for its heavy and sour characteristics, is compatible with several Indian refineries capable of processing such grades, especially those with residue upgrading units.
