Industry Odisha Bureau, Oct 24: Trinidad and Tobago wants two Indian state-run oil firms to process Venezuelan crude. It has proposed the idea to ONGC Videsh Ltd (OVL) and Oil India Ltd. The plan centres on the Guaracara refinery at Pointe-à-Pierre, now under renovation.
Chandradath Singh, the country’s high commissioner to India, disclosed the talks to Mint. He said the Indian companies had shown strong interest in the proposal. He linked that interest to their Venezuelan oilfields, which are now reopening. The proposal remains at the discussion stage.
Guaracara is the largest refinery in the Caribbean region, Singh said. It can process 165,000 barrels per day (bpd). The plant shut in November 2018 after heavy losses and mounting debt. Guaracara Refining Company, a unit of Trinidad Petroleum Holdings, now manages it. The site formed part of the former Petrotrin complex.
Trinidad and Tobago plans to restart the refinery this year. In January, energy minister Roodal Moonilal said talks were under way with Indian Oil Corp. The refinery once ran on crude from Venezuela, Africa and Russia. Domestic crude output is below 55,000 bpd, according to the energy ministry. Imported feedstock is therefore central to any restart.
OVL, the overseas arm of Oil and Natural Gas Corp, already has Venezuelan assets. It has held a 40% stake in the San Cristobal oilfield since 2008. Petróleos de Venezuela SA (PDVSA), the state oil company, holds the rest. US sanctions curbed output there and blocked dividend repatriation. OVL, Indian Oil and Oil India also invested $2.2 billion in the Carabobo-1 project.
An equity stake does not automatically give control over crude cargoes. Any supply link between these fields and Guaracara remains untested.
The talks follow a general licence from the US Office of Foreign Assets Control. OFAC granted it in July for OVL’s Venezuelan partnerships. In an August 18 filing, ONGC confirmed receiving US approval. It said framework agreements for both assets were still under discussion. OVL managing director Rajarshi Gupta said in September these could be finalised within three months. Refining, shipping and payments may still need separate sanctions checks.
India imports about 90% of its crude from around 41 countries. Venezuela became its fourth-largest supplier in August, shipping 383,000 bpd. India bought $3.04 billion of Venezuelan crude during April-July this fiscal year. Washington lifted sanctions on Venezuela earlier this year, Mint reported. Brent crude has traded above $110 a barrel amid Strait of Hormuz shipping risks.
Anisur Rahman of Jamia Millia Islamia said the plan could broaden India’s energy ties. Feasibility depends on refinery compatibility, freight costs, crude discounts, financing and sanctions, he added. Another official said the companies must still assess the proposal’s economics.
For now, Guaracara’s revival hinges on talks that are still at an early stage.
