Iran and Venezuela “much ado about nothing”

Iran and Venezuela “much ado about nothing”

By Dalga Khatinoglu

Iranian Ex-President Mahmoud Ahmadinejad hit the record with a total of 119 foreign trips during his eight years presidency by attending to Latin America, six times to Venezuela, three times to Bolivia and two times to Brazil, Nicaragua, Cuba and Ecuador.

Venezuela's late president Hugo Chavez who called Ahmadinejad the "gladiator of the anti- imperialist battle" also had visited Iran nine times since 2005 and signed more than 100 contracts worth tens of billions dollars, of which almost all of them have been canceled.

Venezuela, after China (with $45 billion worth of contracts) ranks first in term of the number of contracts with Iran, but these contracts mostly faced delay or cancellation.

After all of these agreements, Iran's exports to Venezuela were only $19.4 million, during Ahmadinejad's last year as president and the figure increased by 5.2 times and reached $120 million during Iran's last fiscal year, ended on March 2014, according to Iran's Custom Administration reports. Iran imported nothing from Venezuela during last year. The share of Venezuela in Iran's total exports is about 0.38%.

The more outstanding contracts between Tehran and Caracas were those linked to the energy sector, including the establishment of a joint oil company called "VENIROC" between Iran's Petropars and Venezuela's state oil company PDVSA.

Now, Iran's Oil Ministry after closing National Iranian Oil Company's office in Bolivia on April 7, announced that its second oil office in South America, Venezuela was closed on May 7.

The main contracts includes establishment of a joint bank called the Iranian "Venezuelan Bi-National Bank" with 1.2 billion funds, which was sanctioned by the U.S. in September 2013; as well as the contracts for developing Venezuela's Ayacucho Block 7 and Dobokubi oil fields, construction of $20 billion-worth Liquid Natural Gas (LNG) plant with 10 million tonnes annual capacity in the Delta Caribe area, alongside Venezuela's 10 percent share in an Iran's LNG project with 5.4 million tonnes of production capacity, as well as bulging four tankers (about $300 million) and an offshore platform yard ($130 million) for Caracas by Iran's Sadra Company.

Iran and Venezuela also have signed contracts to construct two methanol production plants with $500 million worth.

None of them has been implemented, with the exception of two medium-sized Aframax oil ships, which Caracas has refused to accept or pay for.

Salman Zarbi, the managing director of Iranian shipbuilding company, Sadra said last September that Venezuela hasn't paid off Iran's first delivered tanker yet and refuses taking the second one.

The National Iranian Oil Company has signed several oil contracts and agreements with the South and Central American countries such as Bolivia, Venezuela, Ecuador, Cuba, and Nicaragua during Ahmadinejad's presidency, non of them has started.

Iran and Venezuela, with ambitious targets in other regions, also started signing several joint contracts in Africa and the Middle East, includes building a refinery with a daily 140,000 barrels refining capacity in Syria.

Another agreement was reached between PDV Marina, PDVSA's shipping subsidiary, and the Islamic Republic of Iran Shipping Lines (IRISL Group), to create a maritime oil transport firm that will enable Caracas to sell more than 500,000 barrels of crude in Europe and Asia.

Iran also has pledged to build 50,000 homes in Venezuela to help alleviate a housing shortage in the South American country.

Now, the managing director of National Iranian Oil Company (NIOC), Roknoddin Javadi has said that the company will gradually close its offices across Latin America as well in the near future.

He went on to note that keeping the offices open is not economically justified, adding that the offices only served political purposes.

Dalga Khatinoglu is specialist on Iran's energy sector and Iran News Service head in Trend Agency

Edited by C.N.

Fars Province to be connected to north-east and south-east of Iran via railway line
Fars Province to be connected to north-east and south-east of Iran via railway line
Azerbaijani Ro-Pax type ferry reaches Kazakh port of Kuryk (PHOTO)
Azerbaijani Ro-Pax type ferry reaches Kazakh port of Kuryk (PHOTO)
Uzbekistan’s 1Q2021 cars export revealed
Uzbekistan’s 1Q2021 cars export revealed
Loading Bars
Latest
Chile reports third consecutive day of over 6,000 daily COVID-19 cases
UN remembers the dead of WWII
2 people, including child, shot in NYC Times Square
Attack on Syrian government forces repelled in Idlib, at least ten militants killed
WHO records over 817,000 new daily cases of COVID-19 worldwide
Iraq decides to quarantine evacuees from India for 14 days as total cases hit 1,108,558
UK records another 2,047 coronavirus cases, 5 deaths
Azerbaijan marks Day of Victory in Great Patriotic War
Iranian trucks do not transport goods to Karabakh - Iranian embassy
NCDC: Georgia to receive extra half a million Sinopharm vaccine doses in June
Iran may extend cooperation on inspections with IAEA
Consumers must protect IoT devices - Fortinet
Azerbaijan’s Baku city has beautiful National Gymnastics Arena – Russian gymnast
Baku holds awarding ceremony of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani team reaches finals in group exercises as part of Rhythmic Gymnastics World Cup (PHOTO)
WB plans to issue loan to finance another road project in Azerbaijan
Any attempt to glorify fascism is disgusting - Russian expert
Group team competitions underway in Baku as part of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani ADA University sсreens film timed to Day of Victory in WWII (PHOTO)
Azerbaijan names finalists in exercise with clubs as part of gymnastics World Cup in Baku
Azerbaijani gymnast reaches finals in exercise with ribbon as part of World Cup in Baku
Iran providing much needed mechanization for farmers in Qazvin Province
Germany’s import of steel from Turkey up
Azerbaijani president allocates funds for construction of new school in Shusha
Funds allocated for construction, repairs of educational institutions in Baku
Uzbekistan interested in co-op with French pharmaceutical company
Funds allocated for creation of heat supply system in Azerbaijan’s Shusha
France’s import of steel from Turkey up
Iran's Energy Exchange announces products to be on sale on May 9
Azerbaijani Finance Ministry places medium-term bonds on auction
Cotton spinning factory of Turkmenistan’s Lebap region names production data
Chevron should remain cautious in further increasing oil & gas production
Azerbaijan to continue online lessons in 10th-11th grades, minister says
Foreign shipping lines expected to return to Iran
Austria increases import of steel from Turkey
Fars Province to be connected to north-east and south-east of Iran via railway line
1Q2021 value of operations via interbank national settlements system in Azerbaijan down
United Arab Bank turns around with Dh10.2 million net profit
Azerbaijan's MoD shares video about Shusha - cultural capital of Azerbaijan
New jobs created in Iran's Ardabil Province
Turkmenistan's Turkmengas opens tender for overhaul of gas turbine engines
Iran’s Bahar Azadi gold coin price falls
World Cup in Baku became one of my favorite competitions - Azerbaijani gymnast (PHOTO)
Khazar Consortium opens tender for purchase of controller
Value of Iran's import of Turkish steel in 4M2021 grows
Russia’s coronavirus reproduction rate remains below 1
Azerbaijan sets up new military units in liberated lands (PHOTO)
Kazakhstan increases exports to UAE
Best moments of second day of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Kazakh gymnast shares impressions of Rhythmic Gymnastics World Cup taking place in Baku
Cult of personality of Garegin Nzhdeh in Armenia can be compared with that of Hitler in Nazi Germany – Russian analyst
Azerbaijan shares data on number of vaccinated citizens for May 8
EU sceptical on vaccine waiver, but ready to discuss proposal
Azerbaijan confirms 649 more COVID-19 cases, 1,720 recoveries
Iran declares details of exports from Ardabil Province
Uzbekistan projects volume of direct foreign investments for 2021
Exports via Iran's Sistan and Baluchestan Province up
Turkey's 4M2021 export of steel to Georgia surges in value
China boosts import of Azerbaijani products y-o-y
Azerbaijan's Central Bank unveils data on foreign exchange transactions over March 2021
Azerbaijani Ro-Pax type ferry reaches Kazakh port of Kuryk (PHOTO)
G-7 countries back Taiwan's observer status in World Health Assembly
Lack of minefield maps delays mine clearance - Trend TV
Uzbekistan’s 1Q2021 cars export revealed
Results of Azerbaijani gymnasts’ performance in exercises with clubs, ribbons as part of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Turkish Energy Ministry prolongs oil, gas exploration licenses for several companies
Azerbaijani president displayed successful strategy on battlefield and in media - two tactics of Great Victory
Turkmenistan sees active dev't of cotton industry
Latvia reveals main economic indicators of bilateral cooperation with Georgia
Iran discloses number of restored mines in South Khorasan Province
Germany's confirmed coronavirus cases rise by 15,685
Azerbaijan's CBC radio starts broadcasting in Karabakh
Iran's Khorasan Razavi Province to increase trade with Turkmenistan
First Vice-President Mehriban Aliyeva made Instagram post on Shusha (VIDEO)
Iran to import Coronavirus vaccine - President Rouhani
Uzbekistan, Kazakhstan implementing road and railroad construction projects
Competitions in Baku always held at highest level - Slovenian gymnast
Azerbaijani Defense Ministry discloses events to be held on occasion of Victory Day - May 9
Buy/sell operations at Iran Mercantile Exchange revealed
Iran Khodro Diesel Company boots its production
Azerbaijan’s Baku city always warmly welcoming - Ukrainian gymnast
Uzbekistan's international reserves grow
Sri Lanka approves Pfizer COVID vaccine for emergency use
Turkmenistan signs decree on pardon for Qadr Night
Uzbekistan Railways plans to resume railway communication with Russia and Kazakhstan
Iran's IMIDRO begins study of public and comparative discovery in Albalaq mine
Azerbaijan’s Azerenergy company names winner of tenders for maintenance of IT equipment
Number of Azerbaijani insurance companies entitled to operate within Green Card system increase
Kazakhstan’s Intergas Central Asia company opens tender to attract services
Baku Stock Exchange unveils 4M2021 transactions on corporate securities
Azerbaijan expanding cooperation with Czech Republic in nanotechnologies
Iran reveals COVID-19 data for May 8
Uzbekistan suspends flights to Turkey and India
Scientific conferences, organized by Baku Higher Oil School on occasion of 98th anniversary of National Leader Heydar Aliyev, are coming to an end (PHOTO)
Uzbek ministry extends tender for pumping and power equipment
Saudi Crown Prince, Pakistan’s PM hold talks as bilateral agreements, MoUs signed
Russia records another 8,329 new daily coronavirus cases
Kazakh-Turkish JV launches tender to attract equipment inspection services
Iran's Shahid Tondgooyan Petrochemical Company plans to increase production
Azerbaijani Central Bank makes allocations for software platform support
All news