Chevron’s first batch of sold Venezuelan oil ships to India

US oil major Chevron has sold its first cargo of Venezuelan crude to India’s Reliance Industries, marking a notable development in global oil trade and the reactivation of Venezuelan crude exports through an agreement between Caracas and Washington.

The cargo consists of Boscan crude, a heavy grade commonly used in asphalt making, and is expected to be shipped on the tanker Ottoman Sincerity. The sale is significant because it represents the first export of Boscan heavy oil in about six years — a milestone in rekindling crude flows after years of limited trade under sanctions, Caliber.Az reports citing industry data listed by the Indian media.

As part of the broader Venezuelan supply revival, international trading houses and buyers have chartered very large crude carriers (VLCCs) for March export loading from Venezuela’s main oil terminal at José, aiming to accelerate deliveries, particularly to India. These supertankers, capable of carrying up to 2 million barrels each, are expected to lower transport costs and boost export volumes under the new market conditions.

Besides the Boscan cargo sold by Chevron, Reliance has also arranged a 2 million-barrel shipment from trader Vitol for loading in March and is exploring direct crude purchases from Venezuelan state oil company PDVSA, sources said. Other Indian refiners — such as Indian Oil Corp, Bharat Petroleum Corp and HPCL Mittal Energy — have also bought Venezuelan heavy crude this year, as India seeks to diversify its imports and reduce reliance on Russian oil supplies amid shifting global energy dynamics.

Before US sanctions were imposed in 2019, India was the third-largest buyer of Venezuelan crude. In January, Venezuelan oil exports rebounded to about 800,000 barrels per day, up from around 500,000 bpd in December, as sanctions eased. Much of the crude previously moved on medium-sized tankers — Panamaxes and Aframaxes — to US refineries or to Caribbean storage terminals for re-export to US and European ports.

The renewed use of VLCCs and larger shipments could help trading houses address logistical challenges and improve economics by spreading freight costs over greater volumes, particularly important given market conditions where Venezuelan heavy crude pricing has faced downward pressure due to backwardation — a situation where near-term delivery prices exceed futures prices.

By Nazrin Sadigova