India’s oil imports from Venezuela to get boost as Modi, Delcy discuss energy cooperation
New Delhi, June 4: India’s oil imports from Venezuela, suspended since 2020, are expected to get a boost along with trade in critical minerals and other items as the way in this regard was paved today during talks between Prime Minister Narendra Modi and visiting Acting President of the energy-rich country Delcy Rodriguez.
During the meeting, the two sides agreed to forge a long-term energy partnership, along with other measures to boost ties in the field of commerce.
The Venezuelan leader, who is on a five-day visit to India starting last evening, indicated that her country looks at this as a “preferred energy partner” given the size of its economy and the fact that it will be stable buyer in the energy market for many years to come, Secretary (East) in the Ministry of External Affairs Rudrendra Tandon said.
Modi responded by saying that India looks forward to building this energy relationship and it will cover both upstream and downstream activities, Tandon said at a media briefing on the talks.
“The discussions focused on forging an energy partnership. They (Venezuela) see India as a stable demander for many years to come. Therefore, there exists a perfect complementarity for India and Venezuela to work in the energy sector, in both upstream and downstream,” the official said.
India was earlier a major importer of oil from Venezuela, receiving more than 4,00,000 barrels per day at peak levels.
The imports were stopped in 2020 after the US imposed sweeping sanctions, which were lifted following the capture of Venezuela’s President Nicolas Moduro in January this year by the American forces through a military operation.
Subsequently, Rodriguez took charge as Venezuela’s acting president, with the blessings of the US.
Since then, US President Donald Trump has been saying that America is in-charge of the Venezuelan oil and responsible for its sales.
India started procuring Venezuelan oil since April, coincindentally as the imports from Iran and other West Asian nations came to a virtual halt.
“It is our money. They (Venezuela) are very sensitive to the issue,” Tandon said responding to a question.
The Modi-Rodriguez discussions also went into broadening the overall bilateral economic partnership to other areas.
“Venezuela is a resource-rich country. It’s not just about critical minerals; it has also gold, diamonds, and other materials. So, mining is very much there. In fact, there was a discussion on how to assess the potential reserves that they have, or whether we could cooperate in that area,” he said.
Tandon declined to directly answer a question on whether the political transition in Venezuela following the capture of Maduro by US forces in January came up for discussion.
“We all know that there was a transition in Venezuela. We are working with a government that is friendly, that wants a partnership with India. We want to reciprocate that. And do not forget that Venezuela has traditionally been very close friend of us, both bilaterally as well as international level,” the MEA official said.
The senior diplomat said BRICS also came up for discussion, and added that it was more to compliment India and PM Modi for New Delhi’s chairmanship of the grouping.
MEA spokesperson Randhir Jaiswal said the two leaders reviewed the full spectrum of bilateral relations and explored new avenues of cooperation in energy, trade, investment, healthcare, automobiles, among others.
“The leaders also exchanged views on global and regional issues of mutual interest.
Both sides reaffirmed their commitment to deepening the bilateral partnership and advancing the interests of the Global South,” he said.
The Venezuelan acting president is accompanied by several ministers, including the ministers of foreign affairs, economy and finance, science and technology, communication and information, and transportation.
The Venezuelan delegation will visit several sites connected with energy, pharmaceuticals and auto sectors to gain insights into India’s technological and industrial capabilities and to explore opportunities for collaboration.
It is learnt that Rodriguez is expected to visit the Reliance Industries Limited’s refinery in Jamnagar in Gujarat.
“The Venezuelan leader will be exposed to the sophistication that India has achieved in the energy sector,” Tandon said.
India and Venezuela share a history of warm relations.
A major thrust to the bilateral relationship was imparted by former president Hugo Chavez’s state visit to India in March 2005.
The two countries have robust cooperation in the energy sector.
The ONGC Videsh Limited (OVL) has a joint venture with Corporacion Venezolana del Petroleo (CVP).
The joint venture is known as ‘PetroleraIndovenezolana SA’ for the production and exploration of oil in the San Cristobal field, in which the OVL has a 40-per cent stake.
