HPCL and Indian Oil Corp purchase 2 million barrels of Venezuelan Merey crude for April

As they reassess their sourcing tactics, India’s state-run refineries have looked to Venezuela for new crude supplies. According to two trade sources with knowledge of the deal, Indian Oil Corp and Hindustan Petroleum Corp have jointly bought 2 million barrels of Merey crude, which will be delivered in the second half of April. One very large crude carrier (VLCC) will transport the cargo; IOC will lift around 1.5 million barrels, while HPCL will take approximately 500,000 barrels. The consignment is expected to reach the east coast of India. According to the reports, the seller is Trafigura, a commodity broker.

As they lessen their need on Russian supply, Indian refiners are making a larger effort to diversify their crude imports, which is seen as helpful for New Delhi’s efforts to move forward with a trade agreement with Washington.

This is the first time HPCL has bought Venezuelan crude. According to information gathered by Reuters, IOC, the biggest refiner in the nation, had previously processed Venezuelan oil in 2024. Because of confidentiality agreements, Indian corporations usually don’t comment on spot tenders. Trafigura chose not to respond.HPCL had stated in January that it was looking for Venezuelan crude for its refinery in Visakhapatnam, Andhra Pradesh, which has been upgraded to handle heavier grades and can process 300,000 barrels per day. At its Paradip refinery in Odisha, IOC previously processed Merey crude.

According to one of the sources, the Merey cargo is priced in relation to the Dubai benchmark and represents prices comparable to those at which Reliance Industries purchased Venezuelan oil from trader Vitol. According to sources who previously spoke to Reuters, Reliance, which runs the biggest refining complex in the world, purchased 2 million barrels of Venezuelan oil for delivery in April at a discount of about $6.50 to $7 per barrel to ICE Brent.

After the U.S. military attempt to seize President Nicolas Maduro last month, Vitol and Trafigura were given U.S. licenses to sell Venezuelan oil. There are some volumes available in the market as a result of U.S. Gulf Coast refiners finding it difficult to handle the sharp increase in Venezuelan imports, according to traders and shipping statistics. U.S. President Donald Trump revoked 25% tariffs on Indian goods imposed over Russian oil purchases, claiming that New Delhi had “committed to stop directly or indirectly” purchasing Russian oil, even though the joint statement on the trade framework made no reference of Russian oil.