Venezuelan President Hugo Chavez on Saturday invited his close ally Iran to deepen its investment in his country's energy sector, particularly seeking help to develop tarry Orinoco crude and offshore gas.
Chavez is due to sign several commercial agreements on the Iranian leg of his world tour. Iranian firms have already poured $1 billion into the Caribbean state, primarily in energy, construction and tractor-building projects.
"We hope that Iranian oil companies come to set up activities in the Orinoco Belt," Chavez told a news conference. "We invite Iranian companies to the Gulf of Venezuela and the delta for gas production," he added.
Venezuelan Energy and Mines Minister Rafael Ramirez attended the same news conference but declined to speak to reporters seeking information on the type of investment the world's no. 4 oil exporter Iran could bring to the no. 5 Venezuela.
Venezuela and Iran are two of the most vocal critics of the United States on the world stage. Caracas has staunchly backed Tehran's nuclear work, rejecting US charges Iranian atomic scientists are building warheads and not just reactors.
Iran's Petropars is already certifying some heavy oil reserves in the Orinoco Belt and is looking to expand operations there into development. Petropars is also looking to provide services to offshore gas extraction in the Norte de Paria field.
Managing Director Gholamreza Manouchehri told the oil ministry Web site last week his firm hoped to sign a long-term investment deal with Venezuela during Chavez's visit.
Venezuela is trying to boost its official reserves by counting heavy crude, such as that in the Orinoco Belt, which is economic only at $40 a barrel. According to the US Energy Information Administration Web site, Venezuela has 77.2 billion barrels of proven conventional oil reserves and up to 270 billion barrels of extra-heavy and bitumen deposits. Chavez boasts his country has the largest oil reserves in the world, an honour normally accorded to Saudi Arabia.
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