133rd Day Of Lockdown

Maharashtra45795629935616142 Tamil Nadu2682852087844349 Andhra Pradesh176333956251604 Karnataka145830692722704 Delhi1391561252264033 Uttar Pradesh100310572711817 West Bengal80984568841785 Telangana6894649675563 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
Business Companies 14 Mar 2019 Reliance halts oil e ...

Reliance halts oil exports to Venezuela in view of US sanctions

PTI
Published Mar 14, 2019, 9:14 am IST
Updated Mar 14, 2019, 9:14 am IST
Reliance has investments in US shale gas projects and trades fuel in North America.
Industry sources said Reliance had a contract to buy some 3 million barrels of crude oil from Venezuela a month.
 Industry sources said Reliance had a contract to buy some 3 million barrels of crude oil from Venezuela a month.

New Delhi: Reliance Industries on Wednesday 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.

 

"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.

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 some 3 million barrels of crude oil from Venezuela a month, which has been reduced to about 2 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.

This has resulted in international banks and shipping companies as well as Reliance ceasing any transactions. These restrictions come into force on March 29 after an eight week winding down period for contracts that were already in effect.

 

Oil from the Orinoco needs to be diluted with lighter grades to reduce its viscosity so as to allow its flow through pipelines to the coast for export or processing. US Secretary of State Mike Pompeo had on Monday hoped that India will not be the "economic lifeline" to the "authoritarian" regime of Venezuelan President Nicolas Maduro by purchasing oil from the Latin American country.

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.

 

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT