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India, heavily reliant on oil imports, is courting Venezuela for long term energy deals to diversify beyond Russia and West Asia, boosting energy security and Latin America ties
India became the second-largest importer of Venezuelan crude in May, purchasing around 4,27,000 barrels per day. (AI-Generated Image)
For much of the last three years, India’s oil story was largely a Russia story.
Following the Ukraine war, discounted Russian crude transformed India’s import basket, with Moscow becoming New Delhi’s largest supplier and helping cushion consumers from global price shocks. But a series of geopolitical disruptions, from instability in West Asia to uncertainty over sanctions and shipping routes—specially the Strait of Hormuz—is now forcing India to rethink its energy strategy.
That explains why New Delhi is in talks with Venezuela for long-term energy agreements after Venezuelan acting President Delcy Rodríguez’s visit to India. The discussions are not merely about buying more oil. They are part of a broader effort to redraw India’s energy map by diversifying suppliers, reducing dependence on vulnerable routes and securing long-term energy security.
India’s Oil Map Is Changing
India imports nearly 90 per cent of the crude oil it consumes, making energy security one of its biggest strategic vulnerabilities. Traditionally, the country’s imports came largely from the Middle East, particularly Iraq, Saudi Arabia and the UAE.
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However, the Ukraine war dramatically altered that equation.
Before 2022, Russia accounted for only a small share of India’s crude imports. After Western sanctions and price caps pushed Russian oil prices lower, Indian refiners ramped up purchases, making Russia India’s largest supplier.
Now, another shift is underway.
Officials quoted by The Economic Times say India is aggressively seeking alternative sources of crude as geopolitical shocks expose the risks of overdependence on any one region or supplier. Venezuela has emerged as one of the biggest beneficiaries of that search.
Why Venezuela Matters Now
The immediate trigger is the disruption of energy flows through West Asia.
The conflict involving Iran has severely affected shipping through the Strait of Hormuz, one of the world’s most important oil chokepoints. Before the disruption, roughly 40 per cent of India’s crude imports passed through Hormuz. That has forced India to look farther afield.
According to Reuters, India became the second-largest importer of Venezuelan crude in May, purchasing around 4,27,000 barrels per day. Venezuelan crude has rapidly climbed into India’s top supplier list and is now among the country’s most important sources of imported oil.
As MEA Secretary East Rudrendra Tandon put it, India and Venezuela share a “perfect complementarity”—Venezuela has some of the world’s largest oil reserves, while India has enormous and growing demand.
The Trump Factor
One reason Venezuela disappeared from India’s oil basket in previous years was US sanctions.
Washington had imposed extensive sanctions on Venezuela’s oil sector, making purchases difficult for international buyers. Indian refiners significantly reduced imports as sanctions tightened. The situation changed this year after the United States eased restrictions and granted licences that allowed companies to resume purchases of Venezuelan crude.
This is why Rodríguez’s visit comes at a crucial moment. With sanctions partially eased and Venezuela seeking new buyers, both countries see an opportunity to rebuild an energy relationship that had largely stalled over the past decade.
Does This Mean India Is Replacing Russian Oil?
No. That is perhaps the biggest misconception surrounding the Venezuela discussions.
Industry analysts point out that Venezuela is being viewed as a diversification option rather than a substitute for Russia. Russian crude remains deeply embedded in India’s refining ecosystem and continues to be economically attractive.
Instead, India’s strategy appears to be broadening its supplier base. The lesson from recent years is that overdependence on any single source, whether the Gulf, Russia or elsewhere, carries risks. By adding Venezuela to the mix, India gains greater flexibility and bargaining power.
How Big Is Venezuela In Global Oil Markets?
The answer is more complicated than it once was.
Venezuela possesses the world’s largest proven oil reserves, estimated at more than 300 billion barrels. However, years of sanctions, underinvestment and economic turmoil have dramatically reduced production.
Despite those challenges, Venezuela remains one of the most resource-rich energy producers in the world and a member of the Organization of the Petroleum Exporting Countries (OPEC). The country’s importance lies less in current output and more in its enormous untapped potential.
For India, that means access not just to current supplies but potentially to long-term upstream investments as well.
Not Just About Oil
One of the most significant aspects of the PM Modi-Rodríguez discussions is that they extend beyond crude imports.
The two sides discussed opportunities in upstream oil exploration and production, downstream refining and energy infrastructure, critical minerals and mining, pharmaceuticals, and broader trade and investment cooperation.
This suggests India is looking at Venezuela not merely as a seller of crude but as a broader strategic resource partner.
The South America Strategy
Venezuela may also be part of a wider trend.
South America is increasingly emerging as an important energy region, with Brazil, Guyana and Venezuela all expanding their roles in global oil markets. Guyana has become one of the world’s fastest-growing oil producers, while Brazil remains a major exporter.
For India, strengthening ties with Venezuela could open the door to a deeper energy footprint across a region that has traditionally played a limited role in its import strategy.
The Road Ahead
The Venezuela talks reveal a larger shift underway in India’s energy thinking. It shows Russia remains crucial and the Gulf remains indispensable. But Venezuela’s return signals that New Delhi is no longer content with a narrow energy basket.
India’s new oil map is becoming broader, more geographically diverse and more strategic, stretching from the Middle East and Russia to Latin America, with energy security rather than geography driving the choices.
About the Author
Apoorva Misra is News Editor at News18.com with over nine years of experience. She is a graduate from Delhi University’s Lady Shri Ram College and holds a PG Diploma from Asian College of Journalism, …Read More
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