Millions of barrels of Iranian crude and condensate arrive in Venezuela

27 Sep 2022

Millions of barrels of Iranian crude and condensate arrive in Venezuela

In defiance of unilateral US sanctions, the two nations have bolstered cooperation to protect their various industries

By News Desk; Cradle

September 27, 2022

https://thecradle.co/Article/News/16186

Venezuela received a delivery of 1.22 million barrels of Iranian crude and 2 million barrels of condensate this month, and the cargo will soon be unloaded according to documents reviewed by Reuters.

The cargo is part of extensive cooperation agreements signed earlier this year between Caracas and Tehran.

The shipping documents from Venezuela’s state-owned oil giant PDVSA also show that, between July and August, Venezuela imported about 4.8 million barrels of Iranian crude and condensate.

Large quantities of Iranian crude are being refined in the Latin American nation to produce motor fuels. Caracas also heavily relies on diluents from Iran to convert its heavy oil to exportable grades.

Iran has played an instrumental role in helping revive Venezuela’s stagnant oil industry, which was severely damaged by unilateral western sanctions and sabotage attempts.

As a result of the hybrid war waged on the country, Venezuela’s oil output dropped from two million barrels per day in 2012 to just a few hundred thousand at the start of 2021.

Earlier this year, Iran’s Naftiran Intertrade Co (NICO) signed a 110 million euro contract with PDVSA to modernize Venezuela’s largest oil refinery, the Paraguaná Refining Center (CRP).

The Islamic Republic also recently delivered the third supertanker to Venezuela, as part of a long-term contract signed in 2006 for four vessels.

During a visit to Tehran this June, Venezuelan President Nicolas Maduro signed a 20-year cooperation agreement with his Iranian counterpart, Ebrahim Raisi, focusing mainly on the areas of agriculture and food production.

As part of this agreement, Venezuela has provided Iran with at least one million hectares of agricultural land, allowing the water-starved Islamic Republic to provide food security for its population.

Just last week, Iranian officials and entrepreneurs signed 60 memorandums of understanding in the fields of science, technology, education, and health. As part of these agreements, Iranian vehicle variants will soon be assembled in Venezuela.

Since his inauguration last year, Iranian President Ebrahim Raisi has pushed for a policy of cooperation with Iran’s neighbors and allied nations, with the goal of overcoming punitive sanctions imposed by the west.