The state-owned oil company took advantage of eased U.S. sanctions to add heavy Merey crude to its refining mix
The Daily Journal.- In a strategic move to secure energy supplies and reduce costs, state-owned Indian Oil Corporation (IOC) has advanced an industrial modernization plan aimed at increasing the complex’s capacity to 18 million metric tons per year during the current fiscal year, while adding Venezuelan oil to the processing mix at its refinery in the western state of Gujarat.
According to Energy World, the Indian company expects to process around 360,000 barrels per day by mid-2026 and toward the end of fiscal year 2027. The refinery currently has a capacity of 13.7 million metric tons per year. The expansion forms part of the Lubricants and Petrochemicals Integration Project (LuPech) in Vadodara, Gujarat.
Plant Executive Director Biplob Biswas confirmed that the facility has already processed its first shipments of Venezuelan crude. The refinery also processes domestic crude, which covers 30% of its needs, while imports supply the remainder.
Historically, the plant relied on imported crude for 70% of its supply, mainly from Russia, the Middle East and the United States. However, geopolitical volatility in the Strait of Hormuz and the need to replace more expensive crude from other regions have made Venezuelan heavy oil a highly cost-effective alternative.
Indian Oil returned to the Venezuelan oil market in early 2026 after Washington eased restrictions and granted specific licenses to major global commodity operators.
With information from news agencies
