US wants to involve Indian refineries in processing Venezuelan oil - Rubio
The United States plans to discuss with Indian company Reliance Industries the possibility of expanding processing of Venezuelan oil at its facilities. Washington views additional refining capacity as one way to ease fuel shortages caused by conflicts in the Middle East and disruptions in global energy supplies.
US Secretary of State Marco Rubio said this during his interaction with journalists in India on October 20.
According to him, during his visit he plans to visit the Reliance Industries refining complex in Jamnagar and discuss the company's capabilities for processing additional volumes of Venezuelan crude.
Rubio noted that Indian companies already have experience working with heavy grades of Venezuelan oil. Therefore, their refining capacity can be useful for increasing fuel supply on the international market.
At the same time, the Secretary of State acknowledged that implementation of such projects may require resolving issues related to existing sanctions restrictions against Venezuela.
According to Rubio, the Indian side has previously shown interest in developing the relevant cooperation. However, no specific agreements regarding new volumes of purchases or processing have been announced yet.
The American diplomat stressed that increasing oil production by itself does not guarantee sufficient fuel supply. To stabilize the market, it is also necessary to increase refining capabilities, especially diesel fuel production.
He noted that India has significant oil refining capacity and companies with relevant technologies.
The issue has become particularly urgent due to problems with energy supplies from the Persian Gulf, attacks on Saudi Arabia's energy infrastructure, and the consequences of the Russian-Ukrainian war for the refined products market.
Rubio acknowledged that Venezuelan oil cannot alone compensate for all disruptions in the global energy market, but over time it can become one of the additional sources of supply.
Separately, the US and India have moved closer to completing negotiations on a bilateral trade agreement. Rubio said that the parties have only a small number of issues left to agree on, and Washington expects to announce reaching an agreement in the near future.
According to the Secretary of State, after the technical agreement is finalized, the document may be signed by the leaders of the two countries.
The negotiations are taking place against the backdrop of India's attempts to diversify its sources of energy imports. Previously, Reliance Industries was one of the largest buyers of Russian oil, but the company also has experience purchasing crude from Venezuela.
Rubio positively assessed New Delhi's efforts to diversify energy supplies, noting that it is impossible to quickly change the structure of oil imports.
At the same time, no new agreement on processing Venezuelan oil has been signed within the framework of the current visit yet.
Sources: Marco Rubio's press conference, The Times of India, Business Standard
