In a significant display of defiance against U.S. sanctions, Iran, Venezuela, and Syria have inked a tripartite Memorandum of Understanding (MoU) to construct a new oil refinery in Syria’s Homs governorate. The planned refinery is expected to have a daily production capacity of 140,000 barrels, aimed at meeting the rising demand for oil products in the region.
Jalil Salari, the Managing Director of the National Iranian Oil Refining and Distribution Company (NIORDC), announced the tripartite agreement last week, stating, “A tripartite memorandum was signed between Iran, Venezuela, and Syria for a new 140,000-barrel refinery to be built in Syria.” He added that studies had shown a pressing need for oil products in Syria and neighbouring countries, leading to the decision to establish the refinery adjacent to the existing Homs and Baniyas refineries.
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The next phase of the project will involve financing and construction, with all three nations collaborating closely. Salari also disclosed that Iranian engineers had successfully repaired the existing Homs refinery during a visit by President Ebrahim Raisi in May. Furthermore, the studies for the new refinery were meticulously conducted by an expert team from the National Iranian Oil Company (NIOC).
This agreement clearly demonstrates Iran’s commitment to bolstering its cooperation with Syria and Venezuela in the oil sector, despite the stringent sanctions imposed by Western countries. Iran has played a role in assisting both Syria and Venezuela in navigating the challenges posed by these sanctions, offering technical expertise and material support.
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In June, Venezuela resumed operations at the El Palito oil refinery, which is undergoing extensive repairs and expansion, following a 100-million-euro deal signed with NIORDC in May 2022. Iranian technical teams are also actively engaged in the restoration of Venezuela’s largest oil refinery complex, the Paraguana Refining Center. The revitalisation plan involves a strategic combination of Chinese and Iranian components, for a refinery initially developed with U.S. technology and expertise.
