EnergyCooperation – India and Venezuela Explore New Paths for Trade and Investment
EnergyCooperation – India and Venezuela are preparing to strengthen their economic relationship following the recent visit of Venezuela’s Acting President Delcy Rodríguez to India from June 3 to June 6. Discussions held during the visit highlighted several sectors where both countries could deepen cooperation, including energy, critical minerals, pharmaceuticals, and automotive manufacturing.
Focus Returns to Energy Partnership
One of the key areas of discussion was crude oil trade. Venezuela possesses some of the world’s largest proven oil reserves, making it an attractive partner for India, which depends heavily on imported crude to meet its growing energy needs. As India continues to diversify its sources of oil imports, Venezuelan crude has once again emerged as an important option.
According to recent assessments, India had previously become the largest Asian buyer of Venezuelan oil, surpassing China in 2012. However, economic sanctions imposed on Venezuela and subsequent international pressures led India to significantly reduce its imports from the Latin American nation in 2019-20 and later in 2025.
Changing Global Conditions Create New Opportunities
The easing of restrictions on Venezuela’s economy and changes in the country’s political landscape have created fresh opportunities for international business engagement. These developments have encouraged both nations to revisit economic cooperation that had slowed over recent years.
Until recently, India sourced much of its crude oil from countries such as Russia, Iraq, Saudi Arabia, and the United Arab Emirates. However, geopolitical tensions and disruptions in global energy supply routes have prompted policymakers to explore alternative and stable sources of crude imports.
The situation became more challenging when regional conflicts affected shipping routes linked to the Strait of Hormuz, a critical passage for global oil and gas transportation. This further highlighted the need for diversified energy partnerships.
Venezuelan Oil Imports Gain Momentum
After nearly five years of limited engagement, India and Venezuela are actively working to restore their energy ties. The renewed interest was already visible before Rodríguez arrived in New Delhi, with imports of Venezuelan crude showing a notable increase.
Industry data indicated that Venezuela had become India’s third-largest supplier of crude oil during May, reflecting the growing importance of the partnership in India’s energy strategy.
During her visit, Rodríguez toured the Jamnagar refinery in Gujarat, one of the world’s largest refining complexes. The facility processes Venezuelan crude, and discussions reportedly focused on expanding cooperation beyond imports to include exploration, production, and refining activities.
Critical Minerals Emerge as a Strategic Area
Apart from energy, critical minerals were another major topic of discussion. India is seeking reliable partners for minerals essential to advanced technologies, electric vehicles, renewable energy systems, and defense manufacturing.
As countries around the world compete for access to these resources, India is looking to reduce dependence on a limited number of suppliers and build more resilient supply chains. Venezuela’s mineral resources could play a role in supporting these long-term objectives.
Outstanding Business Issues Addressed
The talks also covered pending financial obligations involving Indian companies operating in Venezuela. Investments made by Indian firms in the energy and pharmaceutical sectors have faced challenges over the years due to economic difficulties and sanctions.
ONGC Videsh, the international arm of India’s state-owned energy company, is reportedly awaiting more than $500 million linked to its Venezuelan ventures. The company has been associated with the San Cristobal onshore oil project since 2008 through a partnership with Venezuela’s national oil company.
Indian pharmaceutical firms are also estimated to have outstanding payments worth several hundred million dollars. Resolving these issues is expected to strengthen confidence among businesses interested in expanding operations.
Expanding Cooperation Beyond Oil
Rodríguez also visited pharmaceutical and auto-component manufacturing facilities during her stay. These visits reflected Venezuela’s interest in strengthening industrial cooperation with Indian companies and attracting investment across multiple sectors.
Observers believe the renewed engagement could open doors for broader trade and investment opportunities, helping both nations diversify economic partnerships while addressing strategic priorities in energy, manufacturing, and technology.