Iran, Venezuela ink deal to see more cooperation on energy matters

Iran and Venezuela became allies after being saddled with heavy US sanctions. Now, the two nations have strengthened their bond with a new agreement to see closer cooperation in the energy sector. 

The deal was signed by the energy ministers from both countries Javad Owji from Iran and the newly installed Pedro Rafael Tellechea from Venezuela, in Caracas. Venezuela’s Executive Vice President Delcy Rodríguez bore witness. 

According to Iran media, the Memorandas of Understanding (MOUs) speak to the development of oil and gas fields, and also, the reconstruction and renovation of Venezuelan oil refineries with the aim of maximising the capacity of those facilities.

They also focus on the reconstruction and modernisation of Venezuelan petrochemical complexes via Iranian technical services, engineering and equipment, and the overhaul and modernisation of the loading docks and oil terminals. An agreement was also reached on the trade and export of oil, gas condensate and petroleum products.

Venezuela’s Maduro thanks Iran for helping oil industry overcome U.S. sanctions | OilNOW 

For years, the two nations have been working in defiance of the sanctions. 

While China and Russia avoided challenging the US, Iran swooped in. 

Tehran sent several gasoline cargoes to Venezuela to help it overcome fuel shortages, as well as equipment to help state oil company PDVSA repair its dilapidated refineries.

Washington’s sanctions on Iran’s oil industry were an attempt to try to halt the country’s nuclear program. With Venezuela, the sanctions were on PDVSA to pressure President Nicolas Maduro, a socialist accused of rigging his 2018 re-election, to resign.

But its sanctions on Venezuela has lightened a bit. 

Washington is allowing Trinidad to tap into the Dragon gas field in Venezuelan waters. 

It also relaxed its sanctions regime to allow Chevron to export crude from Venezuela last year, as Russia’s war in Ukraine tightened supply markets.