TEHRAN – Iranian Oil Minister Javad Oji has announced the launching of the country’s first extraterritorial refinery called El Palito in Venezuela with a processing capacity of 100,000 barrels per day (bpd), Shana reported.

"This was a long-standing and 43-year-old dream that was realized through the efforts of my colleagues at the National Iranian Oil Refining and Distribution Company (NIORDC)," Oji was quoted as saying on Sunday.

Speaking in an energy seminar on fuel supply and services, the minister said launching this refinery in Venezuela is just the beginning of a comprehensive plan based on which the Islamic Republic will build such refineries in other friendly countries as well.

Iran signed a 116-million-U.S. dollar contract with Venezuelan state oil firm PDVSA in May to repair and expand the refinery.

Iran has also been swapping Venezuelan heavy oil and other commodities for gasoline, condensate, refinery parts, and technical assistance while providing the country with lighter oil to be used as diluent.

As its oil output becomes heavier, Venezuela struggles to source medium and light grades for its refineries, contributing to limited production and intermittent scarcity of motor fuels. The South American country also increasingly needs lighter crudes or refined products to turn its extra heavy oil output into exportable grades.

In total, Venezuela has received this year over 24 million barrels of Iranian crude and provided 21 million barrels under the swap agreement that was expanded earlier this year.

NIORDC eyes expanding refinery operations overseas

Jalil Salari, head of NIORDC, also said in the same seminar that efforts are underway to expand Iran's refinery operation in overseas projects.

NIORDC is pursuing many overseas projects in collaboration with major refining companies in order to realize the goals of the Oil Ministry regarding the expansion of activities in other countries, Salari said.

EF/MA