New Delhi: Reliance Industries has said it has stopped all oil exports to US sanction-hit Venezuela and will not resume sales until sanctions are lifted.
Reliance, whose twin refineries at Jamnagar in Gujarat were a major importer of Venezuelan crude oil, has reduced purchases by about a third, said reports.
“Since the US government imposed sanctions on the Government of Venezuela in late January 2019, Reliance Industries Ltd has been in close contact with representatives from the US State Department to ensure full compliance,” a company spokesperson said.
Reliance has investments in US shale gas projects and trades fuel in North America.
“Our US subsidiary has completely stopped all business with Venezuela’s State-owned oil company, PDVSA, and its global parent has not increased crude purchases,” the spokesperson said.
“In addition, since sanctions were imposed and contrary to some news reports, Reliance has halted all supply of diluent to PDVSA and will not resume such sales until sanctions are lifted.”
Reliance said it will continue a constructive dialogue with the US government to ensure Reliance remains in compliance.
US President Donald Trump in January slapped oil sanctions on Venezuela. The sanctions, however, do not ban importing crude oil from Venezuela but bars imports from the US of the diluents that must be blended with the extra-heavy oil from Venezuela’s Orinoco Belt so it can flow through pipelines.
Industry sources said Reliance had a contract to buy around three million barrels of crude oil from Venezuela a month, which has been reduced to about two million barrels already.
Venezuela’s State-owned oil company, PDVSA, has been placed on the US Treasury Department’s Specially Designated Nationals list, which generally prohibits American citizens from dealing with named firms or individuals.
These restrictions come into force on 29 March after an eight week winding down period for contracts that were already in effect.
The US has slapped sweeping sanctions on PDVSA with a view to curb Venezuela’s crude exports and put pressure on socialist President Maduro to step down.