Iran and Venezuela signed three memorandums of understanding in the energy sector in Tehran on Sunday.
Two of the MoUs were inked between Iranian Oil Minister Masoud Mirkazemi and his Venezuela counterpart Rafael Ramirez during the Venezuelan delegation's visit to Tehran which was headed by President Hugo Chavez.
Iran will import gasoline from Venezuela if sanctioned
Based on an agreement between the two sides, Tehran will import gasoline from Caracas if the West imposes sanction on Iran, Mirkazemi said here on Monday.
The Mehr News Agency quoted the newly appointed Iranian oil minister as saying that, "according to the signed agreement, Venezuela will provide Iran with gasoline in case of sanctions."
Chavez has said the agreement is of high importance.
According to the MoU, Iran will daily import 20,000 barrels of gasoline, worth $800 million, from Venezuela as of October.
Venezuela will import technology and machinery from Iran in exchange for the export-bound gasoline.
Swapping $760m energy investments
Based on two other agreements, Venezuela and Iran will both invest $760 million in each other's energy sectors.
Venezuela's State oil company Petroleos de Venezuela SA (PDVSA) Company will finance ten percent of the required amount for carrying out the development plan of Iran''s South Pars gas field's phase 12, SHANA reported.
The managing director of Petropars Company and the Venezuelan side signed the MoU.
Iran's Petropars is the operator of the project.
According to the MoU, PDVSA will invest $760 million in South Pars gas field's phase 12.
The South Pars Phase 12 development plan is aimed at producing 78 million cubic meters of natural gas, 110,000 barrels of gas condensates, and 750 tons of granular sulfur per day.
South Pars, in the Persian Gulf, is the world's largest gas field, shared between Iran and Qatar. It covers an area of 9700 square kilometers, of which 3700 square kilometers (South Pars) is in Iranian territorial waters and 6000 square kilometers (North Dome) is in Qatari territorial waters.
PDVSA would invest $760 million in the development of phase 12 of Iran's giant South Pars natural gas field and Tehran pledged to invest same amount of money in the development of Venezuelan oil field Dobokubi as well as the development of Block 7 of the Ayacucho oil field.