INSUBCONTINENT EXCLUSIVE:
Venezuelan oil in the wake of US sanctions on the country.Venezuela is the fourth largest oil supplier to India after Saudi Arabia, Iraq and
It accounted for about 11 per cent of domestic oil supplies in 2017-18, supplying close to 18 million tonnes (mt)
But the oil imports from Venezuela have come under threat following the US sanctions, forcing Indian companies to scout for alternate
good trade relation with both Mexico and Brazil
Both countries are also leading producers of oil, with Brazil at the 10th largest oil producer globally with a production of about 150
but a decision to enhance imports would depend only after accessing the quality of oil and terms of supply that should be comparable with of
Venezuela," said the source.India is already importing oil from both Brazil and Mexico but the quantity had come down progressively since
While India imported crude worth $ 3.50 billion and $ 1.78 billion from Mexico and Brazil respectively in 2013, this went down to $1.38
billion and $0.81 billion now.Mexico's state oil company Pemex has reported a decline in production due to its ageing fields resulting in
But the situation may change soon with a new government pushing up production focusing on inviting foreign investment in their fields
Brazil also is undertaking big reforms in the energy sector to increase production and exports of oil.India imported 155 mt of oil in
The imports are expected to hit over 170 mt in FY19 with Saudi Arabia being the largest supplier followed by Iraq and Iran
Oil imports from Iran are already on the decline due to US sanctions
This is expected reduce further once the US removes the waiver given to certain oil importing countries.The US is seeking to cut off
Venezuela's oil revenue as part of its efforts to build pressure on President Nicolas Maduro to step down
The sanctions mean that anyone using US banking channels or having a big presence in the US and continuing to deal with Venezuela will also
face restrictions.In view of this, domestic buyers such as Reliance Industries and Nayara Energy (formerly Essar Oil) have already reduced
These companies are big on oil imports from Venezuela
In fact, Reliance Industries accounted for 80 per cent of Venezuelan oil imports to India in 2018 at 270,000 barrels a day
But the company has reduced its purchases of Venezuelan crude oil to well below its contracted levels.Get the latest election news, live
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