India, Venezuela Discuss Long-Term Energy Partnership Amid Hormuz Disruptions

Venezuela's acting President Delcy Rodríguez arrived in India for a four-day visit— her first trip to the country since she became interim head of the Venezuelan government following the capture of President Nicolás Maduro by US forces during an operation in Caracas in January. She held talks with Prime Minister Narendra Modi at today.

External affairs ministry secretary Rudrendra Tandon, briefing journalists after the meeting, described the discussions as focused on forging a long-term energy partnership spanning both upstream and downstream activities.

Rodríguez conveyed that Venezuela "looks at India as a preferred partner" given its position as a stable, large-scale energy buyer for the foreseeable future. Modi, in turn, said India wanted to build an energy relationship that extended from exploration through to refining.

Tandon noted there was "perfect complementarity" between a country sitting atop the world's largest proven crude oil reserves and one of the world's fastest-growing energy consumers. "We are aggressively seeking new sources of crude oil to ensure India's energy security," he said. "Venezuela is very much part of our plan."

Venezuela’s Importance

India had stopped buying Venezuelan crude last year after Trump authorised a 25% discretionary tariff on countries purchasing oil from Caracas. Purchases resumed in February following a bilateral arrangement between Washington and Caracas reached in the wake of Maduro's capture, under which the US Treasury controls proceeds from Venezuelan oil sales.

In May, India was the second-largest importer of Venezuelan oil, taking in approximately 427,000 barrels per day — second only to the United States. Kpler data indicates Venezuela is on course to become India's fourth-largest crude supplier for the month.

The context driving that acceleration is the near-complete closure of the Strait of Hormuz, which had previously carried more than 40% of India's crude imports.

The Dividend Problem & More

As per reports, the Indian side raised the issue of ONGC Videsh Ltd, the state-run exploration company which holds equity stakes in two Venezuelan oil projects and has been unable to repatriate more than $500mn in accumulated dividends. "It's a public sector company's money, but it is an issue that is on the table, and they are very sensitive to this issue," Tandon said, adding that the matter was an active part of ongoing discussions with Caracas.

The talks also covered pharmaceuticals — with Indian generic manufacturers well positioned to supply high-quality, affordable medicines to Venezuela — as well as critical minerals, gold and diamonds. Tandon said the two sides discussed how to properly assess Venezuela's potential.