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Iran, Venezuela to sign 25-year oil contract

Iran Materials 29 May 2012 11:29 (UTC +04:00)

Azerbaijan, Baku, May 29/Trend M. Moezzi

After six year-negotiations, Iran and Venezuela have agreed to develop an oil field in eastern Venezuela.

The National Iranian Oil Company (NIOC) and PDVSA, Venezuela's state-run oil company, first began the discussions over developing a block of the Dobokubi oil field in 2006, Mehr news agency reports.

As agreed by Tehran-Caracas, the contract on developing a part of the Dobokubi oil field will be signed for 25 years. Iran's Petropars will finance 26 percent of the project and PDVSA will be responsible for the other 74 percent of financing. About $500-520 billion will be required for Iran to invest in the field.

The National Iranian Oil Company (NIOC) owns all the shares in Petropars.

Iran and Venezuela have recently signed a number of oil, gas and petrochemical agreements including one for building four oil tankers and one for a urea and ammoniac complex in Iran's Pars Special Economic Energy Zone (Assaluyeh).

The two political allies are working together to build an oil refinery in Syria.

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