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February 25, 2026

Venezuela Boosts Oil Exports to India with Mega Cargo Shipments

The CSR Journal Magazine

Venezuela has escalated its oil exports to India by deploying super-sized tankers, which have the capacity to transport up to 2 million barrels of crude oil. This development signifies a marked transformation in trade dynamics following a recent supply agreement between Caracas and Washington. Reports indicate that trading firms have initiated the chartering of Very Large Crude Carriers (VLCCs) for the first time since the new supply deal came into effect. The renewed shipping activity underscores confidence in Venezuela’s ability to resume its crude oil exports effectively.

Significance of VLCCs for Export Operations

The adoption of VLCCs, which are among the largest vessels in maritime shipping, showcases Venezuela’s commitment to enhancing its oil export capabilities. These carriers have the capacity to hold approximately double the volume of Suezmax tankers and nearly quadruple that of Aframaxes. By utilizing these larger vessels, the country aims to reduce transportation costs while expediting the shipping process. At least three VLCCs, namely Nissos Kea, Nissos Kythnos, and Arzanah, have been assigned loading slots for March at José terminal, managed by the state-owned oil firm PDVSA. Another supertanker, Olympic Lion, is also indicating Venezuela as its planned destination.

Anticipated Impacts on Delivery and Costs

The introduction of larger cargoes is expected to significantly cut freight expenses and hasten the delivery schedule starting next month. Reports suggest that this increase in oil exports could aid in reducing the substantial inventory of crude currently stored in Venezuela. By optimizing shipping logistics, this shift could contribute to managing the existing surplus.

Revival of Indian Engagement with Venezuelan Oil

This recent development comes at a critical juncture for Indian refiners, who had previously been major purchasers of Venezuelan crude oil before US sanctions imposed in 2019 limited supply availability. However, with the easing of restrictions by Washington under a new licensing framework, trade between Venezuela and India is beginning to recover. Notably, US company Chevron has recently made its first sale of Venezuelan crude to Reliance Industries since December 2023. This cargo of Boscan heavy crude represents a significant milestone, being the first transaction of its kind in nearly six years. Furthermore, Reliance has procured a 2-million-barrel shipment from Vitol and is investigating direct purchasing options from PDVSA.

Diversification of Indian Crude Sources

Indian trading houses have begun to procure Venezuelan heavy crude, supplying firms such as Indian Oil Corporation, Bharat Petroleum Corporation, and HPCL Mittal Energy. As India seeks to diversify its sources of crude and minimize reliance on Russian supplies, the country’s refiners are particularly attracted to the discounted pricing of Venezuela’s Merey heavy crude. Nonetheless, traders have pointed out that global market dynamics, especially backwardation, have affected profit margins. Nevertheless, the transition to larger cargoes is expected to lessen freight-related challenges and improve the overall economic viability of these transactions.

Current Export Figures from Venezuela

Venezuela’s oil exports saw a resurgence, reaching approximately 800,000 barrels per day in January, a notable increase from around 500,000 barrels per day recorded in December. However, this rapid recovery has resulted in the accumulation of millions of barrels within storage facilities, volumes that could potentially be absorbed by Indian refiners in the near future.

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