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Syria, Iran, Malaysia and Venezuela ink 2.6-billion-dollar oil deal

By dpa news     Oct 30, 2007 in Business
Syria, Iran, Venezuela and Malaysia signed Tuesday a 2.6-billion-dollar contract to establish an oil refinery in central Syria with a capacity of 140,000 barrels per day (bpd).
Under the agreement, Venezuela will have 33 per cent of revenue while Iran and Malaysia will take 26 per cent and Syria 15 per cent in accordance with each partner's funding of the refinery, the Syrian oil ministry said in a statement.
The refinery is be established at al-Foroklos city in northern Homs governorate, the statement said.
Crude oil will be provided by Venezuela (42,000 barrels), Iran (28,000 barrels) and Syria (70,000 barrels) on a daily basis for an initial 25-year term, while Malaysia's SKSO&G company will provide machinery.
The contract was signed by representatives of Iranian National Company for Oil Refinery (NIORDC), the Syrian Ministry of Petroleum (MOPMR), Venezuela's Oil and Energy Ministry (PDVSA) and Malaysia's SKSO&G.
The deal was concluded following an initial memorandum of understading signed in October 2006.
The memo said the refinery would help "boost the national economy in Syria and ensure the necessary oil derivations for local consumption."
Venezuela's relations with Iran and Syria have strengthened under President Hugo Chavez, who views the Middle Eastern nations as important allies in his efforts to build what he calls "a multi-polar world" no longer dominated by the United States.
Syria's production of oil has declined over the past decade. In 1996, it peaked at 590,000 bpd, dropping to some 365,000 bpd of crude in 2005. dpa opc ch