Iran has started refining its crude oil in Venezuela, the oil minister announced on Sunday.
“Iran has started processing nearly 100,000 barrels per day of its crude in Venezuela's El Palito Refinery,” Javad Owji was also quoted as saying by the Oil Ministry’s news agency Shana.
“This was a long-standing and 43-year-old dream that was realized through the efforts of my colleagues at the National Iranian Oil Refining and Distribution Company,” he added.
The minister also noted that efforts are underway to expand Iran's refinery operation in more overseas projects.
According to reports, the Oil Ministry is considering similar projects in other Latin American countries, including in Nicaragua.
Petroleos de Venezuela operates the El Palito Refinery, which is located in Carabobo and started operations in 1954.
The refinery has a capacity of 140 million bpd, however, as it had several incidents in the past years, its output had reduced to half its capacity.
Iran signed a $116-million contract with Venezuelan state oil firm PDVSA in May to repair and expand the El Palito Refinery and now is using it to process its oil.
Tehran and Caracas have also recently expanded a swap agreement, which was signed last year, adding the supply of Iranian heavy crude to Venezuela's El Palito refinery and Paraguana Refining Center.
Iran and Venezuela have managed to withstand economic pressure from the United States and have closely cooperated to offset the impact of illegal sanctions, particularly those targeting their energy sectors.
Back in June, during a visit to Tehran, Venezuelan President Nicolas Maduro announced the signing of a 20-year cooperation plan with Iran to expand joint cooperation in various sectors, such as oil, banking and economics.
Since 2020, the two countries have worked on expanding cooperation, especially in energy projects and oil trade amid the draconian US sanctions that they have been repeatedly subject to. This has helped both countries ease the effects of sanctions on their economies.
In response to US pressures on Venezuela's transportation and commerce services, Iran has provided gasoline supplies and equipment required in oil refineries. Venezuela has also received significant shipments of condensate from Iran.
