Bharat Petroleum Corporation Limited (BPCL) and HPCL Mittal Energy Limited (HMEL) have each acquired one mn barrels of Venezuela’s Merey crude, with BPCL making its first purchase and HMEL buying Venezuelan oil for the first time in two years, according to three sources familiar with the trade. The sources requested anonymity because the deals were confidential.

The heavy oil was acquired through two separate deals and is planned to be co loaded on a Very Large Crude Carrier (VLCC) to reduce shipping cost, a move expected to raise India’s imports of Venezuelan crude to at least six mn barrels through April. Co loading on a single vessel is intended to cut freight expenses and improve delivery efficiency for importers.

The purchases were made from trader Vitol and price details were not immediately available, the sources said. HMEL had previously received Venezuelan shipments in February 2024, and other Indian refiners have bought the same grade in recent months as they diversify supplies. Traders including Trafigura have been marketing Venezuelan cargoes under licences granted by the United States as part of a broader supply arrangement with Caracas.

BPCL will split one cargo for discharge at Kochi port in Kerala for its 310,000 barrel per day Kochi refinery and the other for discharge at Sikka in Gujarat for its 156,000 barrel per day Bina refinery. HMEL will import through Mundra for its 226,000 barrel per day Bathinda refinery. Analysts said refiners in India are diversifying crude sources as they reduce purchases from Russia, a trend that assisted New Delhi in securing an interim trade understanding with Washington. Separately, market participants expect shipments from Venezuela to the United States to pick up in coming weeks, as some large refiners seek direct purchases.