New Delhi
Energy security priority in oil procurement, says MEAIndia on Thursday said its strategy to ensure the country’s energy security and diversification of sources amid “developing international dynamics” will be a key factor in deciding energy sources, including Russia, leaving open the option of buying oil from Venezuela.
External Affairs Ministry spokesperson Randhir Jaiswal’s comments came three days after US President Donald Trump announced the finalization of a trade deal with India, with the Indian side “agreeing to stop buying Russian oil and buy more from the US and, possibly, Venezuela”.
When Jaiswal was asked at a weekly media briefing about Trump’s comments about India stopping energy purchases from Russia, he replied that the government has publicly stated on several occasions that ensuring energy security for 1.4 billion Indians is its “top priority”.
He added, “Diversifying energy sources in line with objective market conditions and developing international mobility is at the core of our strategy to ensure this. All decisions in India are and will be made with this in mind.”
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As for Venezuela, Jaiswal said the South American country is India’s long-standing partner in oil trade and investment in energy exploration. India’s energy imports from Venezuela have come to a halt in 2019-20 due to US sanctions. Purchases resumed in 2023-24, but had to stop again after the US imposed a 25% tariff on countries buying Venezuelan oil.
Noting that Indian state-owned firms have an established partnership with Venezuela’s national oil company PDVSA, Jaiswal said: “Consistent with our approach to energy security, India is open to exploring the commercial viability of any crude supply option, including Venezuela.”
Indian state-owned oil companies ONGC Overseas Limited (OVL), Indian Oil Corporation Limited (IOC) and Oil India Limited (OIL) have interests in two oil projects in Venezuela. OVL signed an agreement with a subsidiary of PDVSA in 2008 for a 40% participating interest in the San Cristobal project, while a consortium that includes three companies has a 40% stake in a company that is developing two blocks in the Orinoco heavy oil belt.
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Despite considerable pressure from the US and European countries, India extended its purchase of discounted Russian crude to 2022, soon after the West imposed sanctions on Russia for its invasion of Ukraine. This moved Russia to become one of the top three suppliers alongside Iraq and Saudi Arabia, accounting for less than 1% of India’s energy supply.
Trump’s frustration with the lack of success in ending the war in Ukraine led to his decision to impose a 25% punitive tariff on India for buying Russian oil. Those tariffs have now been removed, according to Indian and US officials.
