Iranian ship-building company to construct tankers for Venezuela
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According to Reuters, Venezuela's state-run energy company, PDVSA, strikes a $67.54 million contract with Iran Marine Industrial Company (SADRA) for the construction of two additional Aframax tankers.
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Venezuelan oil workers take a break at El Palito refinery during the arrival of Iranian oil tanker Fortune near Puerto Cabello, Venezuela, Monday, May 25, 2020 (AP Photo/Ernesto Vargas)
According to Reuters, Venezuela's state-run energy company, PDVSA, stroke a $67.54 million contract with Iran Marine Industrial Company (SADRA) for the construction of two additional Aframax tankers.
Earlier, PDVSA had requested the Iranian company to construct two Aframax tankers and signed a 460-million-euro contract to revamp the refinery complex in Paraguana.
In addition to striking agreements with SADRA, PDVSA is also cooperating with Iran's Naftiran Intertrade Company (NICO) in oil-related matters. Tanker Trackers monitoring firm has reported that two Iranian supertankers of condensate will be delivered to Venezuela by the end of February. Moreover, NIORDC signed a 110-million-euro contract with PDVSA to repair the El Palito refinery.
PDVSA has struggled with US sanctions, but its cooperation with Iran has allowed it to replenish its fleet.
It was reported by Reuters that the complex's outdated power supply will also be repaired in the process of the renovation. Refineries that were initially constructed using US technology would blend Chinese and Iranian parts and equipment for the scheduled distillation unit upgrade
Iranian-Venezuelan cooperation counteracting US sanctions
Venezuela and Iran have lately increased trade in defiance of US sanctions since 2020. Iran has consistently sent fuel tanks to Venezuela and helped in refinery repairs.
PDVSA relies on Iranian South Pars condensate to convert its heavy oil to exportable grades. Iranian crude oil is also refined into motor fuel in South America.
Despite US draconian oil sanctions, Venezuela imported 2 million barrels of Iranian condensate in 2020 and 4.6 million barrels in 2021.
The two countries exchanged Iranian gasoline for Venezuelan jet fuel under an agreement signed in 2020.
Iran's supply of condensate helps Venezuela stabilize exports of Orinoco crude blends and allows the country to refine its own lighter oil to produce much-needed motor fuel.
Historically, the two countries have had friendly and strong relations, especially during the era of the late socialist leader Hugo Chavez (1999-2013), which were further strengthened during the era of his successor.
