India and Venezuela have agreed to step up crude oil trade and move towards a long-term energy partnership, as Caracas has emerged as India’s third-largest oil supplier amid New Delhi’s diversification push triggered by supply disruptions in West Asia.

The understanding follows talks between Prime Minister Narendra Modi and Venezuelan acting President Delcy Rodriguez, where both sides also explored expanding cooperation in critical minerals, pharmaceuticals, automobiles and agriculture. According to Ministry of External Affairs officials, Indian refiners have sharply increased spot purchases of Venezuelan crude since April, reflecting a broader shift in sourcing strategy to bolster energy security.

Union Oil Minister Hardeep Singh Puri, after meeting the Venezuelan leadership, said India is actively seeking to deepen its energy partnership with Caracas, describing the relationship as “long-standing” and “complementary.”

He noted that Venezuela holds the world’s largest proven oil reserves, while India brings strong demand, refining capacity and technical expertise to process heavy crude. “India has a long standing energy partnership with Venezuela since 2008 and shares unique complementarities with the country,” Puri said in a post on X, adding that Indian refiners were already among Venezuela’s key crude buyers in April and May 2026.

Energy ties deepen on “perfect complementarity”

Officials described the engagement as being anchored in what both sides called “perfect complementarity” between Venezuela’s vast oil reserves and India’s rapidly growing energy demand. MEA Secretary (East) Rudrendra Tandon said Caracas sees India as a “preferred energy partner” and a “stable demander for many years to come.”

He added that discussions focused on building a structured, long-term energy partnership covering both upstream exploration and downstream refining activities. “India looks forward to building this energy relationship covering both upstream and downstream activities,” Tandon said.

India has emerged as one of the key buyers of Venezuelan crude in spot markets, with imports rising as Indian oil marketing companies diversify procurement sources to mitigate geopolitical risks and ensure supply stability. Officials said the engagement reflects a pragmatic recalibration of India’s energy sourcing strategy rather than short-term opportunistic buying.

Puri also said Indian companies already have investments in Venezuela and are actively exploring additional opportunities in upstream oil projects as well as wider energy cooperation.

“Our technical team will visit Venezuela soon to further explore this potential,” he said, adding that the partnership aligns with India’s broader energy security strategy as the country imports about 90% of its crude oil requirements and continues to prioritise diversification amid global price volatility

$500 million dues flagged, broader trade push underway

Alongside efforts to expand energy cooperation, India also raised the issue of over $500 million in pending dividends owed by Venezuelan state entities to ONGC Videsh Ltd, highlighting an unresolved commercial dispute within an otherwise expanding partnership.

“It is our money. They are very sensitive to the issue,” Tandon said, underscoring the financial friction even as both sides push to widen engagement.

Beyond hydrocarbons, the two countries discussed expanding cooperation in mining, including critical minerals, gold and diamonds, as well as pharmaceuticals, transport, automobiles and agriculture. Venezuela has also expressed interest in assessing its mineral reserves in partnership with Indian firms.

The Venezuelan delegation is expected to visit key Indian energy and industrial facilities, including Reliance Industries’ Jamnagar refinery, as both sides explore deeper downstream collaboration and potential long-term investment partnerships in the energy value chain.