Diplomat reiterates Iran-Venezuela energy cooperation

A Venezuelan diplomat on Tuesday underlined the significance of Tehran-Caracas energy cooperation for the two countries’ independence.

“Cooperation between Tehran and Caracas in the field of energy will serve the interests of the two nations,” Venezuelan Embassy’s First Secretary for Energy Affairs Louis Mayta told FNA.

“These ties will help our countries and other countries similar to us stand on their own feet,” he added.

The diplomat said that Tehran and Caracas have inked a deal on daily supplies of 20,000 barrels of gasoline to Iran.

Mayta underlined that based on the agreement Iran will repay the equivalent sum in the form of investment in his country’s projects by Iranian companies.

The diplomat further assured that the quality of the gasoline to be supplied to Iran would stand at international levels.

Venezuelan President Hugo Chavez had earlier announced his country’s preparedness to export 20,000 barrels of gasoline to Iran as soon as October.

Speaking in a joint press conference with his Iranian counterpart Mahmoud Ahmadinejad during an official visit to Tehran in early September, Chavez reiterated that the two countries had signed an agreement in this regard.

Iran is the world’s fourth-largest exporter of crude oil but due to the lavish consumption of heavily subsidized fuel by Iranian drivers, the country cannot meet its domestic gasoline needs, and is forced to import large amounts which it then sells at very cheap pump prices, burdening the budget. Iran imports 22-25 million liters of gasoline per day at present.

The US Senate in an attempt to force Tehran to halt its enrichment program, voted to put pressure on companies selling gasoline to Iran.

The bill approved by the Senate and the House of Representatives says companies that continue to sell gasoline and other refined oil products to Iran will be banned from receiving Energy Department contracts to deliver crude to the US Strategic Petroleum Reserve.

The bill now goes to US President Barack Obama for signing. Both chambers must approve identical legislation before it can go to Obama to sign into law.