Iran Partners with Venezuela to Boost Petrochemicals

Iran Partners with Venezuela to Boost Petrochemicals
(Friday, June 16, 2023) 22:42

TEHRAN (NIPNA) -- In a significant move to strengthen bilateral ties, Iran has announced its participation in reviving Venezuela's 12 million-ton petrochemical capacity, marking the signing of their first offshore petrochemical contract.

Javad Owji, Iran's Minister of Petroleum, revealed in an exclusive interview with the news section of the Islamic Republic of Iran Broadcasting (IRIB) Channel One, that more than 2.8 million pieces of Iranian-made equipment and components have already been employed in Venezuela's oil refineries.

He emphasized that after successfully addressing the refining sector, the focus has now shifted towards revitalizing the petrochemical complexes in Venezuela, which had been rendered inactive due to sanctions. Notably, Venezuela boasts an impressive production capacity of over 12 million tons for essential petrochemical products such as ammonia, urea, and polyethylene.

Highlighting the challenges faced by Venezuela, Owji pointed out that the country possesses four oil refineries with a daily refining capacity of 1.4 million barrels. Unfortunately, these refineries had fallen into disuse as a result of sanctions and the departure of foreign experts. However, with the advent of the thirteenth government and the activation of energy diplomacy, efforts to revitalize and undertake major repairs in these refineries have commenced, leading to the resumption of oil exports and gas condensate.

The Minister of Petroleum underscored the positive impact of Iranian contributions, stating, "More than 2.8 million pieces of Iranian equipment and goods related to oil refineries have been exported to Venezuela, resulting in a significant revival of the idle refining capacity in these refineries. Additionally, after addressing the refining sector, our attention has shifted to the petrochemical complexes in Venezuela, which were previously hindered by sanctions. The country possesses a remarkable production capacity of over 12 million tons for petrochemical products such as ammonia, urea, and polyethylene."

Owji expressed hope for future collaborations, emphasizing the potential of Iranian companies in providing technical and engineering services, catalysts, and technical knowledge to actively participate in Venezuela's petrochemical complexes. He aspired to see the products of these complexes showcased in international markets, paralleling the achievements of its oil refineries.

Moreover, the Minister of Petroleum announced the entrance of capable Iranian companies into Venezuela's oil and gas fields development, stating, "Promising contracts have been signed for the reconstruction and development of loading docks and oil terminals."

The report indicates that Iranian-Venezuelan oil cooperation has gained substantial momentum with the start of the thirteenth government. These collaborative efforts, which began last year with the initial contract signing for the development of Venezuelan refineries utilizing Iranian technical knowledge and equipment, have now reached new heights with the recent visit of Iranian President Seyyed Ebrahim Raisi and the signing of several cooperation documents for development.

Iran and Venezuela collectively possess approximately 40% of the world's proven oil reserves. However, both nations face significant challenges due to unilateral US sanctions targeting their oil industries.

Despite these obstacles, Iran has successfully achieved indigenization of 85% of the required equipment for its oil industry. In addition to fulfilling domestic needs, Iran has ventured into the export market for technical and engineering services to regional countries and other oil-producing nations, including Venezuela.

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