Iran and Venezuela shake hands to “revive” the world’s leading oil refining center

A unit of Iran’s State Oil Refining and Distribution Company (NIORDC) this month signed a $116 million deal with Venezuelan state oil company PDVSA to repair and expand El Palito, the smallest refinery. located in the central part of the South American country.

NIORDC’s next project is CRP, a complex of two of the world’s leading refineries with a capacity of up to 955,000 bpd. Details of the deal are still being negotiated. According to independent estimates, CRP last month was operating at only 17% capacity.

“In about a year, Iran can send people to Paraguana. They are focusing on completing preparations, including housing for workers,” a source revealed.

The next project of Venezuela and Iran is the largest oil refinery complex in Venezuela: Paraguana Refining Center (CRP). Photo: Reuters

The CRP project will contribute to strengthening the energy relationship described as a “lifesaver” for Venezuela’s oil industry, which has been hit hard by US sanctions.

Iran, which is also under US sanctions, has supplied the government of Venezuelan President Nicolas Maduro with fuel and diluents to produce exportable crude.

From 2020, Iran will also provide equipment to help Venezuela repair and upgrade its 1.3 million bpd oil refining network. Earlier this year, Iranian state-owned companies provided CRP with the necessary equipment to restart a gasoline production unit.

“Iran will complete major projects that PDVSA planned to implement but failed to do,” another source confirmed.

The oil market recently fluctuated sharply because of worries related to the Covid-19 pandemic, the Russia-Ukraine conflict…