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Iran is ringing Venezuela's oil refineries

2022-05-23 21:00:39Biznes SHKRUAR NGA REDAKSIA VOX
Iran is ringing Venezuela's oil refineries
Paraguana oil refinery in Venezuela

Iranian state-owned companies have begun preparations to renovate Venezuela's largest oil refinery, the Paraguana Refining Centre with a production capacity of 955,000 barrels per day, four sources aware of the talks told Reuters.

The agreement would deepen an energy relationship that has become a lifeline for Venezuela's crumbling oil industry, amid a crisis caused by decades of mismanagement and underinvestment, and weighed down by U.S. sanctions on the South American country.

Iran, also sanctioned by the United States, has supplied President Nicolas Maduro's government with fuel and thinners for the production of exportable crude and since 2020 has offered parts to repair and update Venezuela's refining network of 1.3 million barrels per day.

A unit of the Iranian National Oil Refining and Distribution Company (NIORDC) signed a 110m-euro ($116m) contract with Venezuelan state oil firm PDVSA this month to repair and expand the 146,000 bpd El Palito refinery.

Her next project is Paraguana, a two-refinery complex that is among the largest in the world, through a contract that is now being negotiated. The center, known as CRP, operated with only 17 percent of capacity in April, according to independent estimates.

"For about a year, Iran should be able to bring its people to Paraguana," one of the people said. "They have been very focused on preparations, including housing for workers."

Earlier this year, Iranian state-owned firms supplied Paraguana with parts for the resumption of a gasoline production unit. The equipment, made in North America, arrived in Venezuela from China after the Iranians carried out procurement and transport, a person with knowledge of the purchase said.

Many Chinese firms avoid direct relations with Venezuela to reduce the risk associated with sanctions, agreeing to deals only if a third party handles orders and payments.

 


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