Indian Oil Studies Renewed Venezuelan Crude Purchases

Indian Oil Studies Renewed Venezuelan Crude Purchases

Indian Oil Corp. Ltd (IOC) is considering buying Venezuelan crude for the first time in at least six years, in a move that could help the crisis-struck South American nation settle unpaid bills with another state-owned Indian energy firm.

Venezuela’s economy has collapsed since crude prices plummeted in 2014, forcing it to delay payments for oil services and fuel supplies. Venezuela depends on oil for more than 90% of its export revenues.

Venezuela’s national oil company PDVSA has missed debt payments to ONGC Videsh, the foreign investment arm of Indian explorer Oil and Natural Gas Corp. Ltd (ONGC), for six month and wants to settle $449 million dues using existing and new Indian clients.

In a letter reviewed by Reuters, Venezuelan oil minister Eulogio del Pino wrote to the chairman of IOC , Sanjiv Singh, last week “to evaluate the possibility of a new Venezuelan crude oil supply and refining agreement” with IOC. Read More…

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