CARACAS: Venezuela plans to significantly increase crude oil supply to India and is negotiating with Reliance Industries , its major customer, for a joint venture in the OPEC country’s energy industry, the head of its national oil company, Petróleos de Venezuela S.A., Eulogio Del Pino, said.Reliance, the operator of the world’s biggest refinery complex at Jamnagar, and Essar Oil, which also runs a large refinery, are key customers of PDVSA , consuming 500,000 barrels per day of the country’s exports of about 2.4 million bpd. China absorbs another 550,000 bpd.Top executives said the two Asian giants would purchase half of Venezuela’s output when it more than doubles to 6 million bpd by 2019 with the help of its long-term investment plan of $143.7 billion.“Two of our most important clients are Reliance and Essar. One of the most important refining complexes in the world is Reliance’s. We are looking at Asia because the demand for more oil is going to come mainly from Asia. India and China are the most important markets,” Del Pino said.The country produces heavy, viscous oil, which is usually priced lower than lighter grades. Modern refineries that process such grades of crude earn much higher refining margins than other processing plants that require superior grades of oil. Venezuela is also much further away from its key Asian market than West Asian suppliers such as OPEC powerhouse Saudi Arabia, but PDVSA executives say its oil is competitively priced and supplies are reliable.“We offer them sustainability. We can sustain supply for a long time. Indian companies appreciate that a lot. It is secure supply,” Del Pino said.Venezuela is counting on foreign companies, particularly those from China, India and Russia as well as oil major Chevron, to increase oil output from joint ventures in which the state oil company holds 60% stake. ONGC Indian Oil Corp and Oil India are already in joint venture called PetroCarabobo in the oil-rich Orinoco belt, but PDVSA is looking for more investment from Indian companies such as Reliance Industries.“We are talking to Reliance for a joint venture. We are in the initial phase of discussions,” he said. Last year, a company executive said on the sidelines of a conference that Reliance was in talks to take an 11% stake in the PetroCarabobo project. Earlier, Malaysia’s Petronas had sold its 11% stake in the project to PDVSA, helping the Venezuelan company raise its stake to 71%.A PDVSA executive said the company was also in talks with Reliance for investment in “upgraders,” or plants that improve the quality of the heavy Venezuelan crude oil.PDVSA director Ruben Figuera told reporters that foreign companies were attracted to the country as it has the world’s biggest reserves of oil that are not too deep, making it easy and cheap to extract oil.“You can find oil at a depth of only 3,000 feet. Others need to go 20,000-25,000 feet. Our cost of production is very low. We produce oil at less than $10 per barrel but after taxes, royalties, etc., the breakeven price is $40,” Figuera said.The Indian government has encouraged oil refiners to reduce their excessive dependence on traditional oil suppliers such as Saudi Arabia, Kuwait and Iran to make the country less vulnerable to supply disruption. Oil industry executives in India say local refineries have reduced imports from Saudi Arabia and Iran and have stepped up purchases from countries such as Mexico, Iraq and Venezuela.(The reporter travelled to Venezuela on an invitation from PDVSA)