VENEZUELA TAKEOVER: 7 STOCKS IN FOCUS
RELIANCE INDUSTRIES
- Imports ~2M barrels/month from Venezuela, positioning it as prime beneficiary of sanctions relief and supply normalization.
- Cheaper heavy/sour crude enhances Jamnagar refinery margins amid global surplus.
ONGC / ONGC VIDESH
- OVL holds stakes in San Cristobal (40%) and Carabobo 1 (11%) projects, currently producing 12-15K bpd with $500M+ stuck dividends.
- US approvals post-takeover unlock operations, investments, output ramp to 45-50K bpd, and dividend recovery.
OIL INDIA
- Holds 3.5% stake in Carabobo 1 alongside OVL, IOC; regime change enables stalled project revival and cash flow release.
INDIAN OIL CORP
- 3.5% Carabobo 1 partner; benefits from Venezuelan crude access for Paradip refinery's heavy processing capability.
HPCL / BPCL
- Key Venezuelan crude importers (~60-100K bpd average); lower costs post-sanctions boost refining spreads in a low-oil environment.
GLOBAL REFINERS
- Nayara Energy (Rosneft-backed, major Venezuela buyer) gains from reliable discounted heavy crude flows to Vadinar.
Key Takeaway
Venezuela takeover unlocks cheap crude for Indian refiners (RIL, OMCs) while activating OVL/OIL/IOC upstream stakes—position for supply-driven margin expansion over 12-24 months