Venezuela began importing Iranian heavy crude this month, supplied by Naftiran, documents from PDVSA, the owner and operator of El Palito, show.
According to the official Iranian news agency IRNA, that country’s state-owned Oil Engineering and Construction Company signed a 110 million euro (nearly $115 million) contract to repair and reactivate the El Palito refinery, whose production is about 146 thousand barrels per day.
In accordance with Reutersthe agreement comes after negotiations in Caracas, headed by the Iranian Oil Minister, Javad Owji and his Venezuelan counterpart, Tareck El Aissami.
It adds that in the framework of these meetings, two “supertankers” with Iranian crude and condensate arrived in Venezuelan waters, as a way to boost crude oil exports from Venezuela and fuel production.
The contract includes repairs, commissioning and completion of El Palito, according to statements by Farhad Ahmadi, general director of the National Iranian Oil and Distribution Company (Niordc).
“The refinery is currently operating at half capacity after restarting a crude distillation unit earlier this month,” the Reuters report states.
“The project will be financed by Naftiran Intertrade Company,” Ahmadi added, according to the IRNA report. The crude that will feed El Palito will also be provided by Naftiran.
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Neither PDVSA nor the Oil Minister have offered answers about this agreement, which, according to them, also extends a previous exchange agreement, signed last year by the countries sanctioned by the US to exchange Iranian condensate for Venezuelan heavy crude.
Venezuela began importing Iranian heavy crude this month, supplied by Naftiran, documents from PDVSA, the owner and operator of El Palito, show.
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