Iran and Venezuela will launch a joint oil company with its headquarters based in Spain, the semi-official Fars news agency reported on Wednesday, Xinhua reported.
"Iran and Venezuela are establishing an oil company named Beniroug which allows us to make investments and activities in other countries, including Cuba, Sudan, China and Bolivia," First Secretary for Energy Affairs of Venezuela's Tehran Embassy, Louis Mayta, was quoted as saying.
Spain, which helped settle problems in the registration of the Iranian-Venezuelan joint company, will host its headquarters, said Mayta.
The Venezuelan diplomat said on Monday Tehran and Caracas have inked a deal on daily supplies of 20,000 barrels of gasoline to Iran with the quality at international levels, according to the report.
Based on the agreement, Iran will pay the equivalent sum in the form of investments in Venezuela's projects by Iranian companies, he said.
At a joint press conference with his Iranian counterpart Mahmoud Ahmadinejad on Sept. 7, visiting Venezuelan President Hugo Chavez said his country is ready to provide Tehran with 20,000 barrels of gasoline per day, satellite Press TV reported.
It came amid the threat by Western countries to impose gas sanctions on Iran over its defiance to comply with the UN resolutions to halt its disputed nuclear activities.
The United Nations Security Council has so far levied three rounds of sanctions on Iran.
The United States and its allies have accused Iran of trying to develop nuclear weapons under the cover of civilian nuclear program. Iran consistently denied the charges and insisted that its nuclear program is for peaceful purposes only.