India Looks to Expand Venezuela Oil Cooperation
Oil and mining were the main topics discussed during the meeting between Prime Minister Narendra Modi and Venezuela’s Acting President Delcy Rodriguez in the capital city. The conversations sought to create a political agreement signaling Venezuela's readiness to collaborate with Indian companies.
“Venezuela has some of the largest oil reserves globally.” India is a significant and expanding user of oil. In the energy industry, we observe ideal complementarity. "Venezuela has become our third biggest supplier this month in spot purchases," stated Rudrendra Tandon, Secretary (East) in India’s Ministry of External Affairs, during a special briefing.
He stated, “The energy sector in Venezuela is experiencing a significant change. They perceive India will maintain a steady demand for numerous years ahead. The conversations were quite professional and meaningful. There are no major announcements during this trip.”
Rodriguez arrived in India on Wednesday for her initial professional trip as Venezuela's interim President. She has visited India a minimum of six times before in various capacities. For India, the trip occurs as New Delhi aims to broaden its energy acquisitions from West Asia, a region embroiled in a conflict involving the US, Israel, and Iran since late February.
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The turmoil has caused a spike in oil prices due to Tehran's successful blockade of the Strait of Hormuz. The global shipping route represents one-fifth of worldwide energy exports. Venezuela holds the highest confirmed oil reserves globally.
Caracas, nonetheless, encountered multiple sanctions placed by US President Donald J. Trump throughout his initial term in 2019. The sanctions caused Indian firms to stop purchasing crude oil from the South American country. Additionally, numerous Indian companies across different industries, such as ONGC Videsh Ltd. (OVL) and pharmaceutical firms faced the impact of Venezuela's failure to pay dividends on their investments within the nation.
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Tandon confirmed that Modi and Rodriguez addressed the talks regarding unpaid debts to Indian firms, totaling about $500 million for OVL and at least $700 million for pharmaceutical companies.
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“The matter of dividends arose multiple times during talks with Venezuela.” They are quite attuned to the matter, Venezuela is undergoing change. We have made them aware of these issues. “It will be included in our future discussions,” stated India’s Secretary (East).