Trinidad and Tobago in talks with ONGC Videsh, Oil India to refine Venezuelan crude
New Delhi: Trinidad and Tobago is in talks with state-run ONGC Videsh Ltd (OVL) and Oil India Ltd on a proposal to process Venezuelan crude at its Guaracara refinery, which is being reopened after remaining shut for more than seven years, the nation’s high commissioner to India, Chandradath Singh, said in an interview.
The Caribbean government has proposed that the two Indian oil companies process crude from neighbouring Venezuela at the Guaracara refinery in Pointe-à-Pierre, which forms part of the former Petrotrin complex and is currently under renovation, Singh said. Guaracara Refining Company, a subsidiary of Trinidad Petroleum Holdings, manages the refinery.
“I am having discussions with them. They are very interested. They have oil wells in Venezuela, which are now opening up. We have the biggest refinery in the entire region, in Trinidad and Tobago, which was shut down for a while. But we are now reopening it,” Singh told Mint.
The proposal comes as India scouts for energy supplies from across the world amid turmoil in global energy markets triggered by the war in West Asia. India imports about 90% of its annual crude oil requirement from around 41 countries. The market remains volatile, with Brent crude trading above $110 a barrel amid renewed shipping risks around the Strait of Hormuz.
The proposal “could widen India’s energy partnership amid instability in the global oil market,” said Anisur Rahman, professor at the centre for West Asia studies at Jamia Millia Islamia University. India’s imports of Venezuelan oil have also increased. According to S&P Global, daily volumes of Venezuelan oil supplied to India averaged about 190,000 barrels a day in 2026,'' he added.
“Such a measure may help Trinidad restore its economy, while the feasibility of the proposal depends on the compatibility of the facilities for processing the oil, transportation costs, the discount on the crude, financing and the sanctions in place,” he added.
The proposal comes as US secretary of state Marco Rubio, during his recent visit to India, said Reliance Industries Ltd, which operates the world’s largest integrated refinery complex in Jamnagar, Gujarat, has the capacity to process more heavy Venezuelan crude.
“They have the capability to refine heavy crude. They’ve done so in the past, and I think as more and more Venezuelan oil comes online, it’s something they can do,” he said.
The US has been pushing India to buy more Venezuelan oil following the change of government in the South American nation and the US takeover of control of its oil and gas assets.
Guaracara refinery
The refinery has a capacity of 165,000 barrels per day (bpd) and has been shut since November 2018 because of losses and high debt. The Caribbean country announced plans to reopen it this year.
In January, Trinidad and Tobago’s energy minister, Roodal Moonilal, said the government was in talks with state-run Indian Oil Corp. Ltd (IOC) to restart the refinery as the country sought to revive refining capacity that had been shut for more than seven years.
The Guaracara refinery previously processed crude from Venezuela, as well as supplies from Africa and Russia. Trinidad and Tobago’s domestic crude production is below 55,000 bpd, according to the country’s energy ministry.
OVL, the overseas arm of Oil and Natural Gas Corp. Ltd (ONGC), has held a 40% stake in Venezuela’s San Cristobal oilfield since 2008, with state-owned Petróleos de Venezuela SA (PDVSA) holding the remaining stake. US sanctions squeezed production at San Cristobal and halted the repatriation of dividends from the businesses. Separately, OVL partnered with IOC and Oil India to invest $2.2 billion in the Carabobo-1 project.
“The companies will have to analyse the proposal and look into its economic viability,” said another official familiar with the developments.
At the time of writing, the December contract on the Intercontinental Exchange was trading at $114.30 a barrel, up 0.98% from its previous close. The International Energy Agency expects global oil supply to remain in deficit through the end of the year as the recovery in Middle Eastern exports remains fragile.
OFAC's license
The proposal and the discussions follow the US Office of Foreign Assets Control (Ofac) granting a general license in July for OVL’s partnerships in Venezuela.
In a filing with the BSE on 18 August, ONGC said, “The required go-ahead was received from US government in July, 2026. Framework agreements for further course of action in both the assets are under discussion with relevant stakeholders.”
Addressing reporters in September after ONGC’s annual general meeting, OVL managing director Rajarshi Gupta said the framework for further operations could be completed within the next three months.
Mint previously reported that OVL was in talks with PDVSA and Venezuela’s new government on the mode of payment—cash or oil in lieu of cash. OVL has also sought operatorship of the San Cristobal oilfield.
The company was expected to receive dividends during a six-month US sanctions waiver on Venezuela that began in October 2023. However, it failed to receive the cargo during that period, and the plan stalled when sanctions were reimposed.
Venezuela, which has the world’s largest oil reserves, has been under US sanctions since 2015. On 3 January 2026, the US captured President Nicolás Maduro and his wife in Caracas and flew them to the US. US President Donald Trump later signed an executive order declaring a national emergency to protect Venezuelan oil revenues held in US Treasury accounts from attachment or judicial process. Sanctions on Venezuela were lifted shortly afterwards, reopening oil flows. In August, Venezuela was India’s fourth-largest crude supplier, with shipments of 383,000 bpd.
India imported $3.04 billion worth of crude oil from Venezuela in April-July of fiscal year 2027 (FY27), up 1,092% from $255.27 million in the corresponding period of FY26. In FY26, crude oil imports from Venezuela were valued at $255.27 million, down 81.85% from $1.40 billion in FY25, according to data from the Union ministry of commerce and industry.
Queries emailed to Trinidad and Tobago’s ministry of energy and energy industries, ONGC, Oil India, India’s ministry of external affairs, the ministry of petroleum and natural gas, and the chairman of Guaracara Refining Company remained unanswered at press time.