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India Diversifies Crude Oil Sources, Eyes Venezuela

  //business-finance.news-articles.net/content/202 .. iversifies-crude-oil-sources-eyes-venezuela.html
  Published in Business and Finance on Saturday, February 14th 2026 at 8:24 GMT by reuters.com
      Locales: INDIA, VENEZUELA, RUSSIAN FEDERATION

New Delhi, February 14th, 2026 - Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of Oil and Natural Gas Corporation (ONGC), is actively pursuing oil supplies from Venezuela, marking a significant shift in India's crude oil import strategy. This move comes as MRPL, and increasingly other Indian refiners, reduce their dependence on Russian crude oil - a trend gaining momentum over the past two years. The initial report surfaced in January 2026 (originally reported January 19, 2024) and developments since then suggest a longer-term restructuring of India's energy portfolio.

For years, Russia has been a key supplier of crude oil to India, offering discounted prices that proved attractive amidst global energy price volatility, particularly following the conflict in Ukraine. However, a confluence of factors - growing Western pressure stemming from sanctions, increasing logistical complexities surrounding Russian oil purchases, and India's own strategic assessment of risk - has led to a gradual but consistent decrease in Russian crude imports.

MRPL's exploration of Venezuelan oil is not an isolated incident. Several other Indian refiners are similarly diversifying their sourcing, seeking to ensure a stable and reliable supply of crude amidst geopolitical uncertainty. This highlights a proactive approach from India to mitigate potential disruptions and secure its energy future.

Venezuela, possessing some of the world's largest proven oil reserves, has been attempting to revitalize its oil exports following years of economic hardship and U.S. sanctions. The easing of some of those sanctions in late 2024 provided a crucial opening for Venezuelan state oil company PDVSA to re-engage with international markets, particularly in Asia. The initial easing allowed for limited exports, and sustained increases have been observed since. India, with its rapidly growing energy demands, represents a significant potential market for Venezuelan crude.

The Geopolitical Context:

The shift away from Russian oil isn't necessarily a complete abandonment. India continues to evaluate market conditions and will likely still purchase Russian crude when economically advantageous. However, the trend points towards a more diversified portfolio, reducing the risk associated with over-reliance on a single supplier. This diversification aligns with India's broader foreign policy objectives of strategic autonomy and multi-alignment.

The situation is complicated by ongoing global instability and fluctuating oil prices. The war in Ukraine continues to cast a shadow over energy markets, and tensions in other regions - such as the Middle East - can rapidly disrupt supply chains. The recent escalation of tensions in the South China Sea has further prompted Indian refiners to seek more geographically diverse sources.

Challenges and Opportunities:

While Venezuelan oil presents an opportunity, it also comes with challenges. PDVSA's infrastructure has suffered from years of underinvestment, potentially impacting the quality and reliability of supplies. Logistical hurdles, including shipping distances and potential insurance complexities, also need to be addressed. Furthermore, the political situation in Venezuela remains volatile, adding a layer of risk to long-term contracts.

However, the potential benefits are significant. Venezuelan crude, often a heavy sour variety, is well-suited for the complex refining capabilities of MRPL and other Indian refiners. Furthermore, securing a stable supply from Venezuela could provide India with greater leverage in negotiating with other oil producers.

Looking Ahead:

Experts predict that India's diversification efforts will continue in the coming years. Alongside Venezuela, other potential suppliers being considered include Canada, Brazil, and West African nations. Investment in renewable energy sources is also a crucial component of India's long-term energy strategy, but crude oil will remain a vital part of the energy mix for the foreseeable future.

The MRPL's move to explore Venezuelan oil is a microcosm of a larger trend - a global recalibration of energy supply chains driven by geopolitical realities and the need for greater energy security. It signals a pragmatic approach from India, balancing economic interests with strategic considerations, and positioning itself for a more resilient and sustainable energy future.