INDIA and Venezuela on Thursday vowed to set up a long-term energy partnership building on their complementarities as Prime Minister Narendra Modi held extensive talks with Venezuelan Acting President Delcy Rodriguez focusing on ramping up economic ties including in critical minerals, pharmaceuticals, agriculture and automobiles. Rodriguez kick-started a five-day visit to India on Wednesday to bolster the overall bilateral cooperation against the backdrop of New Delhi seeking to diversify its crude oil procurement amid supply disruptions due to the West Asia crisis. India’s procurement of Venezuelan crude oil has picked up momentum since April and the South American nation has already emerged as the third largest oil supplier to the country. In the meeting, the Venezuelan leader’s clear message was that her country looks at India as a “preferred energy partner” given the size of the Indian economy and the fact that it will be stable buyer in the energy market for many years to come, Secretary (East) in the Ministry of External Affairs Rudrendra Tandon said. The response by the Prime Minister was that India looks forward to building this energy relationship and it will cover both upstream and downstream activities, he said at a media briefing. “The discussions focused on forging an energy partnership. They (Venezuela) see India as a stable demander for many years to come.

 

Therefore, there exists a perfect complementarity for India and Venezuela to work in the energy sector, in both upstream and downstream,” Tandon said. (Contd from page 1) In the talks, the Indian side also raised the issue of Venezuela owing over USD 500 million in dividends to ONGC Videsh. “It is our money. They (Venezuela) are very sensitive to the issue,” Tandon said responding to a question. “Venezuela is a resource-rich country. It’s not just about critical minerals; it has also gold, diamonds, and other materials. So, mining is very much there. In fact, there was a discussion on how to assess the potential reserves that they have, or whether we could cooperate in that area,” he said. Tandon declined to directly answer a question on whether the political transition in Venezuela following the detention of then President Nicolas Maduro by US forces in January came up for discussion. “We all know that there was a transition in Venezuela. We are working with a Government that is friendly, that wants a partnership with India. We want to reciprocate that. And do not forget that Venezuela has traditionally been very close friend of us, both bilaterally as well as international level,” he said.

 

The senior diplomat said BRICS also came up for discussion, and added that it was more to compliment India and PM Modi for New Delhi’s chairmanship of the grouping. MEA spokesperson Randhir Jaiswal said the two leaders reviewed the full spectrum of bilateral relations and explored new avenues of cooperation in energy, trade, investment, healthcare, automobiles, among others. “The leaders also exchanged views on global and regional issues of mutual interest. Both sides reaffirmed their commitment to deepening the bilateral partnership and advancing the interests of the Global South,” he said. Rodriguez took charge as Venezuela’s acting president following the detention of then President Nicolas Maduro by US forces in January. India was once a major processor of Venezuelan heavy crude, importing more than 4,00,000 barrels per day at peak levels, until sweeping US sanctions and rising compliance risks forcibly shut down purchases in 2020. New Delhi started purchasing crude oil from Venezuela after the sanctions were lifted following Maduro’s capture. Indian oil marketing companies significantly ramped up crude oil sourcing from Venezuela in the last few weeks largely due to the West Asia crisis.

 

The Venezuelan acting president is accompanied by several ministers, including the Ministers of Foreign Affairs, Economy and Finance, Science and Technology, Communication and Information, and Transportation. The Venezuelan delegation will visit several sites connected with energy, pharmaceuticals and auto sectors to gain insights into India’s technological and industrial capabilities and to explore opportunities for collaboration. It is learnt that Rodriguez is expected to visit the Reliance Industries Limited’s refinery in Jamnagar in Gujarat. “The Venezuelan leader will be exposed to the sophistication that India has achieved in the energy sector,” Tandon said. India and Venezuela share a history of warm relations. A major thrust to the bilateral relationship was imparted by former president Hugo Chavez’s state visit to India in March 2005. The two countries have robust cooperation in the energy sector. The ONGC Videsh Limited (OVL) has a joint venture with Corporacion Venezolana del Petroleo (CVP). The joint venture is known as ‘PetroleraIndovenezolana SA’ for the production and exploration of oil in the San Cristobal field, in which the OVL has a 40-per cent stake.