BPCL Makes First Venezuelan Oil Purchase; HMEL Buys 1 Million Barrels

New Delhi, February 19, 2026 — India’s crude sourcing strategy is witnessing a shift as Bharat Petroleum Corporation Limited (BPCL) has made its first-ever purchase of Venezuelan crude oil, while HPCL Mittal Energy Limited (HMEL) has re-entered the Venezuelan market after a gap of nearly two years, according to industry sources familiar with the transactions.

Both refiners have acquired approximately one million barrels each of Venezuela’s heavy-grade Merey crude through separate deals. The cargoes are expected to be co-loaded onto a Very Large Crude Carrier (VLCC), a move aimed at optimizing freight costs and improving procurement efficiency.

With these transactions, India’s total imports of Venezuelan crude are projected to reach at least six million barrels through April, reflecting a renewed engagement with the South American oil producer.

Strategic Diversification

The purchases highlight Indian refiners’ ongoing efforts to diversify their crude basket amid evolving global supply dynamics. As one of the world’s largest crude importers, India meets over 85% of its oil demand through overseas purchases, prompting refiners to continuously adjust sourcing strategies based on pricing, logistics, and geopolitical considerations.

For BPCL, the deal marks a new addition to its supply portfolio. HMEL, a joint venture between **Hindustan Petroleum Corporation Limited and the Mittal Group, had last sourced Venezuelan crude in 2024, trade data indicates.

Why Merey Crude Matters

Venezuela’s Merey crude is a heavy, high-sulfur grade that is typically processed by complex refineries equipped to handle such feedstock. Indian refiners with advanced secondary processing units often use heavier grades to optimize margins, particularly when priced competitively against lighter benchmark crudes.

Industry analysts suggest that freight optimization through co-loading and competitive pricing may have supported the decision to procure Venezuelan barrels at this time.

Broader Market Context

Global oil trade flows have been undergoing adjustments over the past few years due to sanctions, supply disruptions, and changing demand patterns. As refiners seek flexibility, occasional shifts in sourcing regions are not uncommon.

While neither BPCL nor HMEL has publicly commented on the deals, the renewed purchases indicate that Venezuelan crude is gradually regaining space in India’s import mix.

Energy market observers note that such diversification strengthens supply security while allowing refiners to respond dynamically to price movements in the global oil market.

Disclaimer: This article is based on publicly available information and independent research; readers are advised to verify details independently.