Energy Minister and head of Petroleos de Venezuela Rafael Ramirez said the agreement would benefit both countries, adding that after the refinery comes online Iran will import gasoline from Venezuela. Iranian Oil Minister Kazem Vaziri Hamaneh is in Caracas to attend the 140th extraordinary meeting of the Organization of Petroleum Exporting Countries, which opened June 1.
Ramirez said that geopolitical tensions are the primary reason oil prices are currently above $70 a barrel. OPEC has kept its production ceiling at 28 million barrels per day since July 2005. Ramirez stated that Venezuela plans to increase its production to 5.8 million bpd in 2012.
Venezuela takes over US oil projects
Venezuela’s state-owned oil company is taking over multibillion-dollar projects owned by ConocoPhillips and ExxonMobil, Rafael Ramirez, the country’s energy minister, said.
Iran and Venezuela also agreed to jointly build an oil refinery in Syria.