Venezuela is sending its oil to India on a much bigger scale — literally. Super-sized tankers carrying up to 2 million barrels of crude are now heading toward Indian shores, marking a sharp shift in trade flows after a Caracas-Washington supply deal reopened the taps.
According to a Reuters report, “trading houses and buyers of Venezuelan oil have chartered the first very large crude carriers (VLCCs) to export from the South American country since a Caracas-Washington supply deal began, a move that will boost deliveries to India.”
The use of VLCCs — the giants of global shipping — signals confidence that Venezuela’s crude exports are back in business. These vessels can carry roughly double the volume of Suezmax tankers and nearly four times that of Aframaxes, cutting freight costs and speeding up shipments.
At least three VLCCs chartered by Vitol and Trafigura — Nissos Kea, Nissos Kythnos and Arzanah — have been assigned March loading slots at Jose terminal, operated by state oil firm PDVSA. All three are bound for India, sources told Reuters. Another supertanker, Olympic Lion, is also signaling Venezuela as its destination.
The bigger cargoes are expected to reduce transportation costs and accelerate the pace of deliveries starting next month, Reuters reported, potentially draining the millions of barrels currently sitting in Venezuelan storage.
INDIA BACK IN THE VENEZUELAN OIL GAME
For Indian refiners, the development comes at a strategic moment. India was once the third-largest buyer of Venezuelan crude before US sanctions in 2019 choked supplies. Now, with Washington easing restrictions under a new licensing framework, trade is rebounding.
US major Chevron recently sold its first Venezuelan crude cargo to Reliance Industries since December 2023. The Boscan heavy crude shipment marks the first such sale in nearly six years. Reliance has also bought a 2-million-barrel cargo from Vitol and is exploring direct purchases from PDVSA, sources said.
Trading houses have also sold Venezuelan heavy crude to Indian Oil Corp, Bharat Petroleum Corp and HPCL Mittal Energy, as India looks to diversify crude sourcing and reduce dependence on Russian supplies.
India’s refiners are drawn to Venezuela’s discounted Merey heavy crude, although traders have noted that price dynamics — particularly backwardation in global markets — have narrowed margins. Still, larger cargoes may ease freight pressures and improve economics.
Most Venezuelan crude exports earlier this year moved in medium-sized tankers to US refineries or Caribbean storage hubs. The shift to VLCCs represents a logistical upgrade.
Venezuela’s oil exports rebounded to about 800,000 barrels per day in January after sanctions relief, up from roughly 500,000 bpd in December. However, the rapid surge has left millions of barrels unsold in storage — volumes that India’s refiners could help absorb.
With inputs from Reuters
