Tehran already sells drones to Caracas and together, the countries work as a kind of anti-Western authoritarian axis.
An Iranian tanker carrying a million barrels of crude oil arrived in Venezuela over the weekend, according to Reuters. “The cargo is the third of Iranian crude supplied by Iran’s Naftiran Intertrade Co (NICO) to Venezuela’s state-run oil firm PDVSA following a supply contract providing the South American nation with lighter crude. Venezuela has been processing Iranian oil in its refineries,” the report said.
The tanker is named the Sonia I, according to the report, and it departed Iran in May. “Two other Iran-flagged tankers, the very large crude carriers (VLCCs) Dino I and Silvia I, had arrived last month at Venezuelan ports carrying the first cargoes of Iranian crude for Venezuela. They later loaded Venezuelan heavy oil and fuel for Iran in exchange, according to the tracking data and PDVSA’s schedules,” the report noted.
The recent arrival coincides with the visit of Venezuela’s President Nicolás Maduro to Turkey, Iran and now Kuwait. Maduro is trying to expand Venezuela’s influence in the region. An authoritarian and thuggish leader, he is also an enemy of the US. The deals with Iran will help Tehran end its isolation.
“In an elaborate handover ceremony conducted on June 11, Iran reported that it delivered its second domestically built oil tanker,” a report at the Maritime Executive says. “The unnamed vessel, which is only referred to in the reports as ‘Aframax 2,’ was built in defiance of international sanctions and delivered to Venezuela during a visit by the Venezuelan president Nicolás Maduro to Iran.”
Meanwhile, Fars News has highlighted the importance of Iran-Venezuela strategic cooperation. Tehran already sells drones to Caracas and together, the countries work as a kind of anti-Western authoritarian axis. They dislike the US and Israel, as well as democracies.
The 20-year agreement between Iran and Venezuela is yet another agreement for Tehran after it signed a deal with China for 25 years of cooperation.
“The Republic of Venezuela, with an area of 916,000 square kilometers, is located in the shape of a large triangle in North and South America and has an important strategic position due to its barrier between Latin America and Central America and its rich natural resources,” Fars News says. “It is bordered by Colombia to the west, Brazil to the south, and the Atlantic and Caribbean Seas to the north. The country has a population of 28 million.”
The Iranian report notes that Iran’s economy is dependent on oil and gas and that “Venezuela’s total oil production in 2021 will be about 554,000 barrels per day and by 2030 will reach 715,000 barrels per day. In addition, estimates [note] that Venezuela’s gas production will reach 24.7 billion cubic meters in 2021 and 29.6 bcm by 2030.
Strategic cooperation
THERE ARE five opportunities for strategic cooperation between Iran and Venezuela, the report says. These include upgrading Venezuela’s refineries, which will supply domestic consumption.
The report also says that the countries can work on joint cooperation against sanctions. “Venezuela’s refining sector is suffering from chronic wear and tear due to sanctions imposed on the country, and Venezuela’s domestic companies do not have the capacity to upgrade refineries.”
Iran believes that it can upgrade Venezuela’s capacity to refine oil. “By upgrading its refineries, Iran can refine some of its crude oil in its refineries and sell it in the Latin American market because its production is less than its refining capacity.”
In addition, Iran thinks it can establish infrastructure for a “joint Iranian-Latin American study hub in the two countries, which will continuously review and follow up the fields of cooperation.” Tehran knows that Caracas is affected by US sanctions. That means Iran thinks the two countries can share experience in overcoming them.
“Venezuela has the most proven oil reserves in the world, but its production is not commensurate with the size of its reserves…. Iran and Venezuela are two of the founding members of OPEC and have many common political views, so cooperation between the two countries in OPEC can be one of the areas of cooperation between the two sides.”
The point Iran is making is that it can increase work with Caracas and that in doing so it might be able to thwart the US, increase the trade and economy of both countries, reduce their isolation, and spread their influence. This would be bad news for the US, Israel and the region because both countries work against Jerusalem and Washington, and both countries may partner with Russia, Turkey and China as part of an authoritarian new world order.