Venezuelan crude to benefit few pvt refiners

Crude from the country is mostly heavy to extra-heavy and can be processed by only small number of Indian refineries

- RAKESH KUMAR @New Delhi

A stabilisation of Venezuela’s oil sector could allow limited volumes of discounted heavy crude to return to India’s import basket, though the gains would mainly be for a few refiners, largely in the private sector.

As per commodity market analytics firm Kpler, Venezuelan crude is mostly heavy to extra heavy and can be processed by only a small number of Indian refineries. These include Reliance Industries’ Jamnagar complex and Nayara Energy’s Vadinar refinery, both designed to handle high-sulphur, heavy crude. If Venezuelan crude supplies to India resume, Reliance could increase purchases. However, Nayara’s Vadinar refinery may not be able to do so due to sanctions-related constraints.