• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 4 hours Let's shut down dissent like The Conversation in Australia
  • 13 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 6 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 29 mins Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 8 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Donald Trump Proposes Harnessing Liberal Tears To Provide Clean Energy
  • 12 mins One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 5 hours Saudis Buying Oil From Iraq
  • 1 hour Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 12 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 23 hours Democrats and Gun Views
  • 22 hours China Faces Economic Collapse
Southern Pulse

Southern Pulse

More Info

Premium Content

Energy Cooperation Drives a Murky Venezuela-Iran Relationship

During the course of May 2010, Iran and Venezuela continued to pursue agreements in the areas of security, business, housing, and so-called "non-aligned country" diplomacy. Energy, however, remains the mutual interest that most closely binds these two otherwise disparate cultures.

On 7 May 2010, Iranian oil and gas developer Petropars announced that Iran and Venezuela will construct an oil refinery in Syria. On the back of a September 2009 series of memorandums of understanding, signed between Venezuelan president Hugo Chavez and Iranian president Mahmoud Ahmadinejad, Venezuelan energy giant Petroleos de Venezuela SA (PDVSA) joined with Iran's Petropars to establish a joint venture, VENIROGC, which will undertake joint projects in third countries. The Syrian refinery will be the company’s first cooperative project. VENIROGC directors are also studying the feasibility of constructing crude oil storage facilities in China and Africa.

Not two weeks later, Venezuela's foreign minister, Nicolas Maduro met with Ahmadinejad in Tehran on May 18 to formalize a list of agreements. Energy, again, was at the top of the list. Iran's president highlighted the two country's energy agreements by stating that he will "make available [to Venezuela] all Iran's knowledge in the energy field."

Meanwhile, the end of 2009 solidified agreements where by the two countries would form a separate joint-venture based in Span, Beniroug, which would divert energy investments to Cuba, Sudan, China, and Bolivia. Iran has also agreed to build PDVSA four oil tankers, to be constructed in Bushehr, Iran at a cost of US$354 million a tanker.

Tehran continues to import gasoline from Caracas, and the two countries have pledged to invest US$760 million in each country's energy sectors. PDVSA continues to stand by an earlier promise to finance ten percent of the required funds according to a development plan established for Iran's South Pars gas field's phase 12. Tehran also pledged to invest the same amount of capital in the development of Venezuela's Dobokubi and 7th Ayakochou oil fields.

Energy agreements could have opened the door for other less savory activity in Venezuela, as the Department of State underlined in the May 11 release of its state sponsors of terrorism blacklist, which again included Venezuela. Colombian authorities have also disclosed reason to believe that the Revolutionary Armed Forces of Colombia (FARC) have trained groups of Iranians inside Venezuela. A Spanish journalist who will soon publish a book about his six years as an undercover Islamic radical operating in Spain and "terrorist camps" located outside of Caracas appears to support the idea that Venezuelan-Iranian ties, while driven by mutual interest in energy, do not stop at oil and gas.

By Southern Pulse




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play