Irán will continue to spend on Venezuelan oil, petrochemical and natural gas projects, based on agreements the Middle Eastern country’s oil minister Javad Owji signed during a visit to Caracas last week.
By Argus Media – Carlos Camacho
Apr 17, 2023
Owji’s trip came in the wake of turmoil at state-owned Venezuela’s PdV, after a corruption probe into up to $23bn in missing cryptocurrency led to the arrests of more than 20 people and the resignation of oil minister Tareck El Aissami.
Owji signed new initial agreements to develop oil and natural gas fields in Venezuela, overhaul refineries and continue oil trading, Iran state media said on 16 April. This follows a 20-year strategic agreement the two countries — which Iran says have both been “hit by illegal US sanctions” — signed in June. The office of newly installed oil minister and PdV president Rafael Tellechea did not confirm the visit and Venezuela state media did not cover it.
Owji met only with deputy foreign affairs ministers and PdV vice president of international affairs Ronny Romero, according to the Venezuela foreign affairs office.
Despite the US late last year easing some sanctions to allow US major Chevron to export crude from the country, the visit emphasized Irán and Venezuela’s continuing partnership.
“That is a solid relationship … despite the fall of TEA [El Aissami],” said managing director of consultancy Gas Energy Latin América, Antero Alvarado.
Venezuela is under pressure to increase its gasoline output from the current 90,000 b/d, according to PdV figures seen by Alvarado. That barely covers Venezuela’s demand, as evidenced by gasoline shortages even in Venezuela’s Maracaibo oil-producing region, according to residents there. Venezuela’s regional partner Cuba has complained of declining shipments that help sustain the island nation’s economy.
In early March, Cuba complained to Russia’s Rosneft head Igor Sechin about the lack of crude and other shipments. Sechin visited Caracas immediately after, asking Caracas to boost production in meetings that were part of El Aissami’s last public appearance before his resignation.
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