El Palito, first Iranian-built overseas refinery opened in Venezuela
Iranian oil Minister announces that the Islamic Republic of Iran has launched its first Iranian-made refinery in a foreign country in Venezuela with a capacity to refine 100,000 barrels per day of crude oil.
Iranian Oil Minister Jawad Owji announced that the Islamic Republic launched its first overseas Iranian-built refinery in Venezuela. Owji added that this project will be followed by the construction of other refineries in other countries.
El Palito, the name of the refinery, has a capacity of refining 100 thousand barrels per day from Venezuela crude oil.
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In May, the National Iranian Oil Engineering and Construction Company signed a contract worth 110 million euros to repair Venezuela's smaller 146,000-barrel-per-day refinery.
Iran and Venezuela have managed to withstand economic pressure from the United States and have closely cooperated to offset the impact of illegal sanctions, particularly those targeting their energy sectors.
Back in June, during a visit to Tehran, Venezuelan President Nicolas Maduro announced the signing of a 20-year cooperation plan with Iran to expand joint cooperation in various sectors, such as oil, banking, and economics.
Since 2020, the two countries have worked on expanding cooperation, especially in energy projects and oil trade amid the draconian US sanctions that they have been repeatedly subject to. This has helped both countries ease the effects of the sanctions on their economies.
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Last September, the Industrial Scientific and Technological Expofair in Caracas marked another milestone in the Venezuela-Iran 20-year cooperation strategy, as President Nicolas Maduro announced that four Iranian cars will be manufactured in Venezuela.
In response to US pressures on Venezuela's transportation and commerce services, Iran has provided gasoline supplies and equipment required in oil refineries. Venezuela has also received significant shipments of condensate, a heavy oil diluent, from Iran.
It is noteworthy that Tehran and Caracas have recently expanded a swap agreement signed last year, adding the supply of Iranian heavy crude to Venezuela's El Palito refinery and Paraguana Refining Center (CRP).