Indian Refiner Reliance Industries has booked very large oil tankers, known as VLCCs, to transport crude oil from Venezuela, Reuters reported. This marks the first time such massive vessels are being used under a new supply arrangement after recent US actions involving capture of Venezuelan President Nicolas Maduro. These ships can carry 2 million barrel oil than the smaller tankers that were previously being used.
The move is expected to lower transportation costs because bigger ships can carry more oil in a single trip. It will also help ease the shortage of smaller tankers that were handling most of Venezuela’s exports in recent months. Deliveries using these large vessels are expected to begin in March and could make the supply process faster and more efficient.
According to the report, at least three VLCCs — Nissos Kea, Nissos Kythnos and Arzanah — have been booked by global traders Vitol and Trafigura for March loading.