The Daily Brief Why Venezuelan oil needs Indian refineries
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Jan 16, 2026 Discover why India is eyeing Venezuelan crude, despite its heavier refining challenges. Learn how Indian refineries like Jamnagar are uniquely equipped to handle this complex oil. Explore the geopolitical stakes involved, with U.S. controls complicating transactions. In a second riveting discussion, uncover India's urban funding crisis, the factors limiting municipal bonds, and the surprising potential of financially healthy urban bodies. This episode peeks into reforms that could revive the bond market and addresses the pressing needs of India's cities.
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India Is One Of Few Fits For Orinoco Oil
- Venezuelan crude is extremely heavy and sour, requiring very complex refining processes and high NCI refineries.
- India uniquely hosts several high-NCI refineries that can economically process Orinoco oil if prices and logistics align.
Nelson Complexity Determines Who Can Process It
- Refinery capability is measured by the Nelson Complexity Index and processing Venezuelan oil needs NCI ~10 or higher.
- Building such capacity costs $10–25 billion, making existing Indian refineries strategically valuable.
Built For Optionality, India Gains Advantage
- India built complex refineries to handle diverse crude because it lacks domestic fuel sources.
- Reliance's Jamnagar (NCI 21.1) and Nayara (≈12) make India a prime candidate to take Venezuelan barrels.