How Venezuela’s strongest earthquake in a century could affect India’s crude oil imports
Venezuela is grappling with the aftermath of its strongest earthquakes in more than a century, at a time when its economy and energy sector are already under severe strain.Hit by US-led sanctions, high inflation, corruption and years of poor management, Venezuela’s economy has contracted by around 80% since 2013. The latest disaster has now put renewed focus on the country’s oil infrastructure and on countries that have recently strengthened energy ties with Caracas, including India.India, as part of efforts to diversify its crude basket, has sharply increased oil imports from Venezuela in recent months. Average monthly crude imports from the country rose from 64.027 TMT during FY 2025-26 to 1,047.148 TMT during April and May of FY 2026-27. During this period, Venezuela ranked among India’s largest crude suppliers.
Twin earthquakes rock Venezuela
On Wednesday, a magnitude 7.2 earthquake struck about 160km west of Caracas. It was followed less than a minute later by a magnitude 7.5 tremor, according to the US Geological Survey.Venezuela’s interior minister Diosdado Cabello said more than 100 buildings had collapsed in the northern coastal state of La Guaira, with over 70,000 families affected by the twin earthquakes. At least 235 people have been killed nationwide.Cabello said the government was stepping up its response by increasing the number of personnel deployed in La Guaira from 4,200 to 11,500 to support rescue and relief operations.UN humanitarian aid chief Tom Fletcher said search-and-rescue teams from around the world were continuing to arrive in Venezuela as the death toll rose. He said more than 4,300 people had been injured and thousands were still missing.
Oil infrastructure largely spared
Venezuela’s core oil production and refining infrastructure appears to have escaped major structural damage so far. According to PDVSA sources and S&P Global reports, no major damage has been recorded at key production and refining facilities.The Morón Petrochemical Complex, the country’s second-largest, was temporarily shut.Venezuela’s core oil production and refining infrastructure appears to have escaped the quakes. Local fire officials reported a leak in a storage tank, and personnel were restricted from entering the site while safety inspections were carried out. Authorities said the complex had begun restarting operations after checks found no serious structural damage.At the El Palito refinery, an operator told Platts that “everything is normal at the refinery”, though no further details were provided. Reports from Falcón indicated that the Amuay and Cardón refineries remained stable, with no damage reported due to their distance from the epicentre.Other major facilities, including the Paraguana Refining Center and Puerto La Cruz refinery, also continued operations. The Jose export terminal, a key gateway for Orinoco crude shipments, remained unaffected.In the upstream segment, operations across the Orinoco Belt and Maracaibo Basin, Venezuela’s main oil-producing regions, were reported to be continuing normally. International operators, including Chevron, also confirmed that their activities remained active and unaffected.Venezuela’s refining system has a total capacity of around 1.3 million barrels per day, though plants were already operating well below capacity before the earthquakes.Power grid emerges as key concernDespite the limited damage to oil infrastructure, Venezuela’s power grid has emerged as a concern. PDVSA sources told Platts, part of S&P Global Energy, that a blackout had hit central states, including Carabobo, Aragua and Yaracuy, after the quakes.Most major oil facilities are located away from the worst-affected areas. However, power disruptions have raised uncertainty over whether Venezuela can sustain production at pre-earthquake levels of nearly 1.2 million barrels per day.With Morón restarting and El Palito still partially offline, authorities are continuing inspections and repairs across the system. Officials are monitoring both structural integrity and power stability in the aftermath of the tremors.
What it means for India
In recent months, Venezuela has emerged as an increasingly important crude supplier for India. As geopolitical and supply disruptions affected crude imports from the Gulf region, India stepped up engagement with Caracas as part of its broader diversification strategy.Indian public sector companies also have a long-standing presence in Venezuela’s upstream oil sector, with involvement dating back to 2008. India’s total investment in the country’s oil industry is estimated at around $1 billion, spread across the San Cristóbal and Petrocarabobo-1 projects in the Orinoco Belt.The latest earthquakes came just weeks after India and Venezuela signalled deeper energy cooperation. On June 4, Union minister for petroleum and natural gas Hardeep Singh Puri met Venezuela’s acting President Delcy Rodriguez in New Delhi, along with senior ministry officials and chairpersons of public sector oil companies.The discussions focused on building a long-term energy partnership between the two countries. Puri highlighted the long-standing friendship between India and Venezuela and reiterated India’s support for the country’s energy reconstruction efforts. He said Indian companies were ready to expand their presence in Venezuela and emphasised the country’s importance in India’s energy diversification plans.Rodriguez welcomed greater participation by Indian firms in Venezuela’s reformed oil and gas sector and invited an Indian delegation to visit the country to explore new opportunities.Home to the world’s largest proven oil reserves, Venezuela has traditionally supplied crude to India. Indian refiners are also equipped to process Venezuela’s heavy crude grades.Exports continue, but delays likelyEven as authorities assess the damage, Venezuela’s key export infrastructure continues to function. Industry sources said vessels were loading crude oil and fuel without interruption at the country’s main export terminals — Jose, Puerto La Cruz, Amuay, Cardón and Bajo Grande. However, some delays are expected as paperwork and authorisations are taking longer to process after the earthquake.At the Paraguana refining complex, Venezuela’s largest refining hub, workers said operations were continuing at the same levels as before the quake. No major damage was reported in the country’s principal oil-producing regions, which are concentrated in the Orinoco Belt and western Venezuela.Major international energy companies operating in Venezuela have also said their projects remain operational.However, questions remain over the condition of some domestic fuel terminals and storage facilities located near the affected areas. State-owned companies Pequiven and PDVSA have not released detailed information on the status of all their operations.While the earthquakes have disrupted some facilities and triggered fresh infrastructure checks, Venezuela’s major oil-producing regions and export terminals continue to operate.For India, which has recently increased its dependence on Venezuelan crude, the absence of major damage to core oil infrastructure suggests there may be no immediate impact on supplies. However, ongoing assessments, power-related disruptions and uncertainty around some facilities mean the situation remains under close watch.
