Iran, Venezuela, Syria Sign Landmark Oil Refinery Deal to Foil US Sanctions

Iran has revealed plans to build a new oil refinery in Syria's Homs governorate with a capacity of 140,000 barrels per day (bpd) as part of a memorandum of understanding (MoU) signed with Damascus and the government of Venezuela.

"A tripartite memorandum was signed between Iran, Venezuela, and Syria for a new 140,000 barrel refinery to be built in Syria," Jalil Salari, the Managing Director of the National Iranian Oil Refining and Distribution Company (NIORDC) stated. 

"The studies that were conducted found that Syria and its neighboring countries are in need of oil products, therefore a refinery with a capacity of 140,000 barrels was identified next to the two existing Syrian refineries of Homs and Baniyas," the official added, highlighting that the three nations will soon enter the financing and construction phase, Oil Price website reported. 

Salari also revealed that the existing Homs refinery was repaired by Iranian engineers during a visit by President Ebrahim Raisi in May, and that the studies for the new refinery were conducted by an expert team from the National Iranian Oil Company (NIOC).

The landmark deal comes in spite of a brutal sanctions campaign from the West.

Iran has played a pivotal role in helping both Syria and Venezuela overcome the worst of the Western sanctions, providing both countries with technical and material assistance. 

In June, Caracas resumed work at the El Palito oil refinery, which is undergoing major repair and expansion work as part of a 100-million-euro deal signed in May 2022 with NIORDC.

Iranian technical teams are also working to restore Venezuela's largest oil refinery complex, the Paraguana Refining Center. The plan calls for combining Chinese and Iranian parts and equipment in a refinery built initially using US technical know-how and technology.