Mumbai: Reliance Industries on Saturday denied involvement in any arrangements that lead to cash payments for oil supplies to Venezuelan government oil company PDVSA via third parties.
Reports suggesting that Reliance is involved in an arrangement that leads to cash payment for oil supplies to PDVSA via third parties are ‘false and reckless,’ it said in a statement, adding the oil refining major is not in violation of any sanctions imposed by the United States.
Reliance has purchased Venezuelan crude oil from companies like Russian energy giant Rosneft long before the imposition of US sanctions, as they do get title to Venezuelan oil in return for a reduction in their prior debt.
Since sanctions were imposed, Reliance has made such purchases with the full knowledge and approval of the US Department of State (USDOS), and it had 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,” said Reliance.
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.
“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.”
Some recent reports suggested that Venezuela’s President Nicolas Maduro is funneling cashflow from PDVSA through Rosneft as he seeks to evade US sanctions designed to oust him from power.
One said PDVSA and Reliance would a fee equivalent to about three percent of the sale price, split between them.
Reliance Industries is India’s largest private sector company with activities spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.