Iran has begun preparations to revamp the Paraguaná Refinery, the largest of its kind in Venezuela and in the whole world.
Tehran and Caracas, which have both been targets of unilateral sanctions of the US, are negotiating a contract to renovate the Paraguaná Refining Complex, located in the state of Falcón, in northern Venezuela.
According to sources quoted in an article by Reuters, “in about a year, Iran should be able to bring its people to Paraguaná,” given that the Iranian state companies, that are in charge of this project, are now focused on “preparations, including housing for the workers.”
Paraguaná is a two-refinery complex, with a capacity to produce 955,000 barrels per day (bpd), that is now operating much below its capacity, mainly due to the unilateral US sanctions. The sanctions have aimed to cripple Venezuela’s national oil industry, blocking foreign investment and halting exports of the country’s crude oil, on whose revenue the Venezuelan economy heavily depends.
Earlier this year, Iran supplied Paraguaná with spare parts needed to restart a gasoline production unit. The bilateral agreement to modernize the Paraguaná complex would broaden energy cooperation between the two nations and assist them in circumventing the coercive measures to which they have been both subjected.
Moreover, in May, a unit of the National Iranian Oil Company (NIOC) signed a $116 million contract with the Venezuelan state-owned company Petróleos de Venezuela (PDVSA) to renovate and expand the El Palito refinery, in the state of Carabobo, which produces 146,000 bpd.
For the past few years, the Islamic Republic of Iran has supplied Venezuela with fuel and diluents needed for the production of export grade crude. Also, since 2020, Iran has provided spare parts to repair and modernize Venezuela’s 1.3 million bpd refining network.
Both Iran and Venezuela have announced that they will continue to strengthen their cooperation in various aspects, not just oil. They have also warned Washington not to intervene in matters of mutual interest for the two nations.
Featured image: The Paraguaná Refining Complex, in Falcón state, northern Venezuela. Photo: HispanTV.
Translator: Orinoco Tribune