INSUBCONTINENT EXCLUSIVE:
Industries, operator of the world's biggest refining complex, has turned to selling fuels to Venezuela from India and Europe to circumvent
sanctions that bar US-based companies from dealing with state-run PDVSA, according to trading sources and Refinitiv Eikon data.Reliance had
been supplying alkylate, diluent naphtha, and other fuel to Venezuela though its US-based subsidiary before Washington in late January
imposed sanctions aimed at curbing the OPEC member's oil exports and ousting Socialist President Nicolas Maduro.At least three vessels
chartered by the conglomerate supplied refined products to Venezuela in recent weeks, and another vessel carrying gasoil is expected to set
sail to the South American nation as well, according to the sources and data.Reliance, a conglomerate controlled by billionaire Mukesh
Ambani, has significant exposure to the financial system of the United States, where it operates subsidiaries linked to its oil and telecom
businesses, among others.The Indian market is crucial for Venezuela's economy because it has historically been the second-largest
cash-paying customer for the OPEC country's crude, behind the United States.Additional sanctions against Venezuela are possible in the
future, as US President Donald Trump's administration has not yet tried to prevent companies based outside the United States from buying
Venezuelan oil, a strategy known as "secondary sanctions."Refinitiv Eikon trade data shows that Reliance shipped alkylate, a component for
motor gasoline, to Venezuela on vessels Torm Mary and Torm Anabel in recent weeks
Those originated in India and passed through the Suez Canal.It also shipped a gasoline cargo using tanker Torm Troilus to Venezuela and is
preparing to send 35,000 tonnes of gasoil in a vessel called Vukovar to the South American nation."Reliance is also supplying some products
from its Rotterdam storage," a source familiar with Reliance's operation said.Reliance did not respond to emails seeking comment
PDVSA did not reply to a request for comment.In a statement last week, Reliance said its US unit has completely stopped all business with
Reliance also halted all supply of diluents including heavy naphtha to Venezuela and does not plan to resume such sales until sanctions are
lifted, according to the release.Venezuela has overall imported some 160,000 barrels per day of fuel and diluents for its extra heavy oil
output since the US measures were imposed, according to PDVSA and Refinitiv data, below levels prior to the sanctions but still enough to
supply gas stations and power plants.Reliance is among the biggest buyers of Venezuelan oil, although the company has recently said it has
not increased crude purchases from Venezuela
In 2012, Reliance signed a 15-year deal to buy between 300,000 to 400,000 bpd of heavy crude from PDVSA.Ship tracking data obtained by
Reuters showed that Reliance's average purchases from Venezuela were less than 300,000 bpd in 2018 and in the first two months of this
year.Venezuela has suspended its oil exports to India, its main cash market, Azerbaijan's energy ministry said on Tuesday, citing Manuel
Quevedo, Venezuela's oil minister and PDVSA president
Quevedo met with the Azeri minister of Industry and Energy Parviz Shahbazov in Baku.But Venezuela's crude exports to India have not
A very large crude carrier (VLCC) is anchored off Venezuela's Jose port waiting to load oil bound for India, and at least six other
vessels of the same size are underway to India's Sikka and Vadinar ports, according to the Refinitiv data.PDVSA's second largest
customer in India is Nayara Energy, partially owned by Russian energy firm Rosneft, one of PDVSA's primary allies.Get the latest election
news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
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