India's largest corporate house Reliance Industries [Get Quote] will buy 7.5 million tons of crude oil from Venezuela for its upcoming export-oriented refinery at Jamnagar in Gujarat.

"We had talks with Reliance officials on Wednesday and have agreed to supply 1,50,000 barrels per day of oil from June under a long-term supply contract," Venezuelan Oil Minister Rafael Ramirez told PTI in Caracus.

Reliance Industries CEO and President (Oil and Gas) P M S Prasad had a nearly one-hour meeting with Ramirez in Caracus on Wednesday evening where the long-term supply deal was nailed.

• Venezuela promises oilfields to India

The company has been sourcing crude oil from Venezuela, the only OPEC member country from Latin America, for its existing 6,60,000 barrels per day (33 million tons) refinery at Jamnagar.

It bought 2.32 million ton oil from Venezuela in 2006-07 and 0.876 million ton in April-December 2007-08. Ramirez said the oil may be used for its 5,80,000 barrels per day export-oriented refinery coming up adjacent to the existing plant.

Chevron Corp of US has 5 per cent stake in Reliance Petroleum Ltd [Get Quote], a unit of Reliance Industries, which is building the over $ 6 billion refinery.

The new refinery, that will make Jamnagar the largest refining hub in the world, is likely to be completed ahead of its original December 2008 deadline.

Ramirez said Venezuela was looking at India as part of its attempts to diversify its oil exports. The US is the single largest importer of Venezuelan crude.

Reliance is on a sphere to tie-up crude supplies for its new refinery. The refinery has capacity to process the most difficult of crude oils in the world.