Iran and Venezuela are to build an oil refinery in the Faga region of the oil-rich Orinoco province in Venezuela. The refinery will be designed to refine heavy oil and produce gasoline and other oil derivatives.
The refinery is expected to process heavy oil from the region and then Iran will import gasoline from Venezuela.
The announcement coincides with member states from Opec congregating at an extraordinary meeting to discuss latest developments in the world oil market, including the oil price and the possibility of Opec fixing a new ceiling for oil production.
Analysts have suggested that in view of the current situation in the global oil market, no change would likely be made by Opec to its daily production quota of 28mn barrels.