Tehran, Caracas to sign $2 billion oil deal

Iran Materials 29 May 2012 12:43 (UTC +04:00)

Azerbaijan, Baku, May 29/ Trend F.Milad/

The National Iranian Oil Company (NIOC) and Venezuela's state-run oil company (PDVSA), will sign a deal worth $2 billion in the near future for developing a bloc of the Dobokubi oilfield in Venezuela.

Iran's Petropars, on behalf of the NIOC will finance 26 per cent of the project and PDVSA will be responsible for the other 74 per cent of the finance. The Iranian side will invest $500-520 million in the project, according to the Mehr News Agency.

The two countries began discussions to develop the Dobokubi oilfield in 2006.

The oilfield's production capacity is projected to rise from 14,000 barrels per day (bpd) to 40,000 bpd in the first phase and then to 60,000 bpd.

On April 30, Iran and Venezuela signed an agreement valued at $130 million to build an oil platform facility in the South American country, the Mehr News Agency quoted Amir Saeed Najafi Haghi, an official with the National Iranian Offshore Engineering and Construction Company as saying.

Iran is building four oil tankers to be delivered to Venezuela by May 2013, the Iranian Sadra Shipbuilding Company's managing director stated.

"The project has so far progressed by around 45 per cent," the ISNA news agency quoted the Sadra head Mehdi Etesam as saying. The two countries signed a 211-million euro deal in January 2007, the report added.

Iran will deliver the first domestically-made oil tanker with the capacity of 113,000 tons, to Venezuela in September.

The oil tanker is worth 52 million euros and is the first of its kind to be built in the Middle East.