Iran, Venezuela to launch $1.5b oil refinery in Syria

Iran and Venezuela signed a MoU for a joint venture to construct a $1.5 billion oil refinery in Syria, with the capacity of 140,000 barrels of oil per day, Iran’s Oil Ministry announced this week. “The joint venture in Syria has been on the books since the two countries have improved and strengthened bilateral economic trade activities,” said Mohammad-Ali Talebi, a senior official at Iran’s Petropars Oil and Gas Company.
Talebi said Iran would hold a 26 percent stake in the project, while Venezuela would take 33 percent. “The balance will be shared by Malaysia and Syria on a 15 and 26 percent basis,” he added.
Both sides declined to say when construction of the refinery will begin.
Earlier this month Iran and Venezuela, both OPEC members, signed a number of cooperation agreements for new projects in the oil sector during a recent visit by Venezuelan President Hugo Chavez to Tehran. Both sides agreed to invest $760 million in each other’s energy sectors.
“Our aim is to be able to compete with foreign oil companies and to expand our operations in the global oil market,” Talebi said.
According to the agreement, Iran will provide 20 percent of crude oil, Venezuela will supply 30 percent and Syria will supply the balance.