New Delhi, June 26 (IANS) India and Venezuela are moving toward deeper institutional cooperation in the oil sector, particularly in oil exploration, production, refining, and long-term supply agreements, a report has said.
According to an analysis by Modern Diplomacy, talks here between Union Minister for Petroleum and Natural Gas Hardeep Singh Puri and Venezuelan Interim President Delcy Rodriguez, along with an invitation to an Indian energy delegation, mark the beginning of a shift from spot purchases to direct investment and joint ventures.
“Any increase in Venezuelan production could also help ease pressure on supply chains linked to infrastructure materials. This may benefit manufacturers and distributors of thermoplastic supplies, which are commonly used in road safety applications such as Disabled Bay marking, pedestrian crossings and other traffic management schemes,” the report forecasted.
Indian refiners have resumed purchases of Venezuelan crude after earlier sanctions‑related suspensions and India is prioritising diversification of supplies due to instability in the Middle East.
Venezuela has since become one of India’s leading oil suppliers.
For Venezuela, deeper energy ties with India — the world’s third-largest oil importer — offer a route to rebuild its oil industry after years of underinvestment and sanctions by attracting capital to modernise facilities.
“Attracting Indian investment would help Caracas expand production capacity, modernise infrastructure, and secure stable export markets beyond its traditional partners,” it said.
The media house noted that the sustainability of the India-Venezuela partnership depends on several factors, including US sanctions policy.
Further, political uncertainty within Venezuela and fluctuations in global oil prices could complicate investment decisions.
A successful India-Venezuela energy partnership could become a notable example of emerging economies reshaping global energy networks, the report noted.
Venezuela is among the largest crude oil suppliers to India in April and May 2026.
India’s average monthly imports from Venezuela increased from 64.027 TMT during FY26 to 1,047.148 TMT in April-May of FY27.
—IANS
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