Venezuela Crude Oil: US Considers Allowing India to Resume Venezuelan Oil Imports Amid Trump's Major Investment Push

The United States is reportedly contemplating a significant policy shift that could allow India to resume purchasing oil from Venezuela. This potential move, disclosed by a senior official within the Trump administration, would occur under the strict supervision and conditions set by the US, while while the specific terms of these conditions remain undisclosed, the implication is a potential reopening of trade channels that were previously halted due to stringent American sanctions. This development is particularly noteworthy as India, a major global energy consumer,. Stands to gain an additional crucial source for its burgeoning energy demands.

Trump's Strategic Engagements with Oil Giants

Adding another layer to this evolving geopolitical and economic scenario, former President Donald Trump recently held a high-profile meeting at the White House with top executives from some of the world's largest oil companies. During this crucial gathering, Trump reportedly discussed a colossal investment of approximately 9 lakh crore rupees (equivalent to over 100 billion USD) into Venezuela's vast oil sector, while this indicates a broader strategy by the US to potentially reshape the future of Venezuelan oil production and its global distribution, with American oversight playing a central role.

Reliance Industries Seeks Re-entry into Venezuelan Market

Concurrently, India's private sector giant, Reliance Industries, has expressed a strong desire to restart its procurement of Venezuelan crude. According to reports from Reuters, Reliance is actively engaged in discussions with the US authorities, seeking explicit permission to resume these oil purchases. This push by Reliance is understood to be a strategic move to secure alternative oil supplies, especially in light of increasing pressure from Western nations on India to reduce its reliance on Russian oil imports. The company's representatives are reportedly in talks with both the US State Department and the US Treasury Department to navigate the complex regulatory landscape and obtain the necessary approvals.

A History of Sanctions and India's Past Reliance

Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), boasts the world's largest proven oil reserves. Despite this immense potential, its contribution to global oil supply has been limited to approximately 1%, while the country's oil sector faced severe disruption following the imposition of stringent economic sanctions by the United States in 2019. These measures included "secondary sanctions," which effectively threatened any country or company purchasing Venezuelan oil with exclusion from the US market and banking facilities, while this punitive framework compelled many nations, including India, to cease their oil imports from Venezuela. Historically, India was a significant buyer, with various media reports suggesting that Venezuelan oil constituted nearly 6% of India's total oil imports prior to the sanctions.

India's Critical Energy Needs and Diversification

As the world's third-largest consumer of oil, India's energy security is a paramount concern. The ability to diversify its oil import sources is crucial for meeting its rapidly expanding energy requirements and ensuring economic stability. If India is granted permission to resume oil purchases from Venezuela, it would provide a valuable additional option for sourcing crude, thereby enhancing its energy resilience and potentially offering more competitive pricing, while this strategic flexibility is vital for a nation with such a high demand for energy resources.

The Rollercoaster of Sanctions and Import Fluctuations

The relationship between US sanctions and India's oil imports from Venezuela has seen periods of fluctuation. In a temporary reprieve, the US partially eased sanctions on Venezuela between 2023 and 2024, while this temporary relaxation allowed India to resume oil purchases, with imports averaging between 63,000 and 100,000 barrels per day during this period. By 2025, India's oil imports from Venezuela had reportedly surged to approximately $1. 41 billion, while however, this window of opportunity was short-lived. In May 2025, the US once again tightened its restrictions on Venezuelan oil. Consequently, by early 2026, India's crude oil imports from Venezuela plummeted dramatically, accounting for only 0. 3% of its total imports.

Reliance's Previous Engagements and Current Stance

Reliance Industries, which operates the world's largest refinery complex in Gujarat with a capacity of approximately 1. 4 million barrels per day, has a history of purchasing Venezuelan oil under US-issued licenses. In the initial four months of 2025, before the renewed tightening of sanctions, Venezuela's state-owned oil company, PDVSA, supplied Reliance with crude oil via four vessels, amounting to an average of about 63,000 barrels per day, while the last shipment of Venezuelan oil to Reliance arrived in India in May 2025, coinciding with the US decision to suspend most licenses and threaten tariffs on countries importing Venezuelan oil. Following these developments, Reliance publicly stated on a Thursday that it would reconsider resuming purchases if non-US buyers were permitted to buy Venezuelan oil under American regulations, underscoring its readiness to re-engage given the right regulatory environment.

Trump's Vision for Venezuelan Investment and Profit Sharing

During his meeting with executives from major American oil companies, including Exxon Mobil, ConocoPhillips, and Chevron, former President Trump outlined his vision for future investments in Venezuela. He explicitly stated that the United States would be the arbiter, determining which companies would be allowed to enter and invest in the Venezuelan oil sector. Mark Nelson, Vice Chairman of Chevron, affirmed his company's commitment to investing in Venezuela and confirmed its continued operations there. The meeting also saw participation from numerous smaller companies and investors who lauded Trump's policies and expressed their eagerness to invest, indicating a broad interest in the potential reopening of the sector.

A Proposed Framework for Returns and Revenue Distribution

Trump further elaborated on a proposed financial model for these investments. He articulated that companies would need to invest, but also expect a swift return on their capital. Following this, the profits generated would be equitably distributed among Venezuela, the United States, and the investing companies. "I think it's easy. I think I've the formula for it," Trump reportedly stated, suggesting a clear, albeit still under-discussion, framework for economic engagement. However, not all companies shared immediate enthusiasm. Darren Woods, CEO of Exxon Mobil, expressed reservations, noting that Venezuela is currently "not investable" due to the company's assets having been seized twice in the past. Woods indicated that Exxon Mobil would only consider returning if significant changes were made through collaboration between the Trump administration and the Venezuelan government, highlighting the need for a stable and secure investment climate.

In a separate but related development, former President Trump also revealed that Venezuela's interim president would transfer between 3 to 5 crore barrels of oil to the United States. This substantial volume of crude oil, which would be sold at prevailing market prices, is currently valued at approximately 25,000 crore rupees (around 3 billion USD). Trump stated that he would maintain control over the funds generated from the sale of this oil, with the explicit intention of utilizing them for the benefit of both the people of Venezuela and the United States. He further announced on his social media platform, Truth Social, that he had instructed Energy Secretary Chris Wright to immediately implement this plan. The oil is slated to be transported directly to US ports. Via storage vessels, streamlining the process of its acquisition and distribution. This move underscores a direct engagement strategy by the US to manage Venezuelan oil resources, potentially bypassing traditional market mechanisms under specific political arrangements.