Photo via aljazeera.com
Rubio Pushes Reliance to Expand Venezuelan Oil Operations
US Secretary of State discusses refining and production plans with India's largest refiner amid global energy disruptions.
What happened
US Secretary of State Marco Rubio said during a visit to India on Tuesday that Washington will discuss opportunities for Reliance Industries to both refine more Venezuelan crude at its Jamnagar complex and potentially begin producing oil in Venezuela. Rubio is scheduled to meet with Reliance Chairman Mukesh Ambani and tour the refinery on Wednesday. The Jamnagar facility has a combined capacity of about 1.4 million barrels per day and can process Venezuela's ultra-heavy crude.
Reliance has already emerged as a significant importer of Venezuelan oil following increased production after the Trump administration captured former Venezuelan President Nicolas Maduro in January. Rubio acknowledged that Reliance previously maintained operations in Venezuela and noted that Indian companies hold pre-existing oil concessions in the country. He described India as a "refining superpower" and praised its progress in diversifying energy supplies away from Russian oil, which he framed as both a pragmatic move and part of strengthening US-India strategic ties.
The discussions occur alongside broader US-India trade negotiations and a recent Trump administration waiver on tariffs for major Russian oil importers. Rubio also emphasized that Venezuelan oil could help ease global energy pressures intensified by the Iran conflict, though acknowledged it alone would not fully offset disruptions.
Chanakya's Move
Rubio's move is a direct extension of Trump administration strategy to restore Venezuelan oil production under US control by routing it through third-party refiners whose commercial interests align with Washington's geopolitical aims. By targeting Reliance specifically, the US leverages India's need for energy diversification and a pending trade deal to secure commitments without formal sanctions relief or government-to-government resource nationalism debates. Reliance has the technical capacity and prior Venezuela experience to execute quickly. The risk: Venezuelan infrastructure remains degraded, and Reliance may demand commercial terms (stable access, pricing, regulatory clarity) that the fragile Venezuelan interim government cannot guarantee without US subsidy or guarantee. If negotiations stall, it signals that even US allies see Venezuela's oil potential as too uncertain relative to other sources.