India Turns to Venezuela Again as Indian Oil, HPCL Secure Major Crude Deal

New Delhi, February 2026, India’s state-owned refiners Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) have secured 2 million barrels of Venezuelan crude oil in a significant import deal, signaling a renewed flow of Venezuelan oil into the Indian market after years of limited trade.

According to industry officials familiar with the transaction, the crude cargo was purchased through an international trading firm and is scheduled to arrive in the second half of April 2026. The shipment will be transported on a single very large crude carrier (VLCC).

Deal Details at a Glance

• Total volume: 2 million barrels

• Crude grade: Heavy Venezuelan crude (Merey)

• Indian Oil share: Around 1.5 million barrels

• HPCL share: Around 500,000 barrels

• Delivery window: Late April 2026

This marks HPCL’s first-ever purchase of Venezuelan crude, while Indian Oil has processed similar grades in the past at its eastern coast facilities.

Why This Import Is Important

The deal reflects India’s growing effort to diversify crude oil sources amid shifting global supply chains, price volatility, and geopolitical realignments. Heavy crude grades like Merey are particularly suitable for India’s upgraded refineries, which are designed to extract higher value from complex oil blends.

Industry experts note that Venezuelan crude often trades at competitive pricing, making it an attractive option for refiners looking to manage costs while maintaining refinery efficiency.

Where the Oil Will Be Processed

• Indian Oil’s portion is expected to be refined at its Paradip refinery in Odisha

• HPCL is likely to process its share at the Visakhapatnam refinery in Andhra Pradesh, which recently completed major upgrades to handle heavier crude varieties

Venezuela’s Oil Re-Entry into Global Trade

Venezuelan oil exports have been gradually re-entering global markets following regulatory and policy adjustments that allow controlled international sales through licensed channels. Asian refiners, particularly in India, have emerged as key buyers due to strong demand growth and refinery compatibility.

The IOC-HPCL deal comes amid a broader trend of Indian refiners exploring non-traditional supply routes to strengthen energy security and reduce over-dependence on any single region.

Bigger Picture for India’s Energy Strategy

India is the world’s third-largest oil importer, and securing diverse, cost-effective crude supplies remains a top priority. Analysts say deals like this help Indian refiners maintain flexibility in sourcing while navigating evolving global energy dynamics.

With refinery expansions nearing completion and fuel demand expected to rise steadily, such strategic imports could play a larger role in India’s oil procurement strategy in the coming months.