Reliance denies reports on crude purchase via 3rd parties

MUMBAI: Reliance Industries has denied media reports that the Mukesh Ambani-led group is involved in an arrangement that leads to cash payment for oil supplies to Petróleos de Venezuela, S.A. (Petroleum of Venezuela) or PDVSA via third parties.

Reliance said it has purchased Venezuelan crude oil from companies such as ROSNEFT long before the imposition of US sanctions, as the company gets title to Venezuelan oil in return for reduction in their prior debt.

The company further explained that since sanctions were imposed, Reliance has made such purchases with the full knowledge and approval of the US Department of State (USDOS), and Reliance has informed USDOS of specific volumes and transactions.

“Such transactions do not lead to any consequent payment to PDVSA and do not violate US sanctions or policies. Reliance’s price agreement with such sellers is at market and payments by Reliance for such supplies are settled in cash or by product supply bilaterally between Reliance and such sellers,” the Reliance statement said.

The statement added that it is false to suggest that Reliance would be settling such shipments via ROSNEFT to PDVSA. “In these transactions, PDVSA is only the original physical supplier, as the crude oil originates in its export facilities,” the official statement concluded.

 

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