India (Washington Insider Magazine)— Indian conglomerate Reliance Industries has reinitiated its request to the United States for authorization to procure crude oil from Venezuela, according to three individuals familiar with the matter. This move aims to revive the oil trade between the sanctioned South American nation and India, its prominent importer.
License Grant for Maurel & Prom
Maurel & Prom, a French oil producer, announced on Monday that the United States had awarded the business a license on Friday, allowing it to conduct oil and gas operations in Venezuela for the next two years.
Expiration of General License
In April, the United States opted against renewing a general license that permitted Venezuela to export oil and fuel to specific markets, prompting companies to conclude ongoing transactions within a 45-day timeframe. The decision came amidst efforts to reapply pressure on Venezuela’s President Nicolás Maduro due to alleged electoral shortcomings.
Resumption of Purchases
According to Americanomedia, Following the relaxation of sanctions in October, Indian refiners, including Reliance, sought individual authorizations from the US Treasury to resume transactions with Venezuela. Despite these efforts, Reliance resumed Venezuelan oil purchases through intermediaries, evidenced by the chartering of at least one supertanker and receipt of oil shipments from third parties.
Reliance’s Stance
Reliance Industries refrained from commenting on the recent developments, and similarly, the U.S. Treasury Department declined to provide a statement.
License for Maurel & Prom
The issuance of a license to Maurel & Prom is the first exemption given by the United States under the updated sanctions system against Venezuela. According to Olivier de Langavant, the CEO of Maurel & Prom, the clearance bodes well for the company’s future initiatives.
Industry Interest in Venezuela
Over the years, various firms have expressed interest in investing in Venezuela’s energy sector or importing its oil and gas. However, just a few individual applications have been approved, including a critical license for U.S. oil major Chevron.
By adhering to regulatory procedures and obtaining necessary licenses, companies aim to navigate the intricate landscape of international oil trade amid geopolitical complexities.