Mumbai: Reliance Industries Ltd. does not have any arrangement to buy crude oil from Venezuela’s state-owned oil company, PDVSA, for payment in cash to third parties and media reports of such a mechanism are false, the company said in a statement.
“Reliance has purchased Venezuelan crude oil from companies such as Rosneft long before the imposition of US sanctions, as they do get title to Venezuelan oil in return for reduction in their prior debt, the statement sent to the stock exchanges said referring to the Russian oil company. “Since sanctions were imposed, Reliance has made such purchases with the full knowledge and approval of the US Department of State, and Reliance has informed USDOS of specific volumes and transactions. “
While releasing quarterly results on Thursday, Reliance’s joint CFO V. Srikanth said it was sourcing Venezuelan crude from Russian and Chinese companies. Payment made to them for supplies are adjusted against dues owed by Venezuela to these companies, he added.