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Extra Homeland Refinery; Development of the oil market and engineering services during the sanctions

Extra Homeland Refinery; Development of the oil market and engineering services during the sanctions

After Iran's oil minister announced the opening of the first Extra Homeland Refinery called El Palito in Venezuela, some criticized this move, but are these kind of refineries really not beneficial for Iran?

NOURNEWS - Following the launch of Iran's Extra Homeland Refinery in Venezuela, Iran's oil minister Javad Oji said: 100,000 barrels of crude oil from Venezuela's fields will be refined daily in this refinery. But what is the purpose of building Extra Homeland Refineries and why has Iran started investing right under the ear of America and in the backyard of this country? The minister of oil has said in the definition of Extra Homeland Refinery management considered by the 13th government; This is a new type of international interaction in which Iran will renovate and renovate semi-active refineries by exporting technical and engineering services, and in return will become a shareholder in it, and for a more optimal reconstruction of these offshore refineries, the possibility of using crude oil. Iran will also be provided. It seems that this move is a big step in the development of Iran's oil and energy industry, and the construction of this refinery and its acceptance by the Venezuelan government shows that there have been positive developments in the country's refining industry. The thing that is noteworthy in this regard is the intelligence of the planners to deal with the American oil sanctions, because, contrary to the imagination of the American statesmen, Iran does not hide behind its borders to sell oil, and the sanctions of these countries cannot deter Iran from developing its plans. In this program, Iran can increase the level of energy production and sales by anticipating the construction of extraterritorial resources and facilities, especially because extraterritorial refineries will ensure the sale of Iranian oil to more countries and market creation. This is not only considered for energy sales, but the construction of Extra Homeland Refineries will allow Iran to include the export of technical and engineering services related to the construction of refineries in its development plans, and in fact, the knowledge of Iranian experts will be exported to these countries. This approach has been followed for years in the programs of advanced countries and is considered as an effective component for the expansion of target markets and extra-regional trade, and naturally, in the case of Iran, it will lead to an increase in domestic capacity on the one hand and the export of Iranian expertise to other countries on the other hand. It should be kept in mind; Economic experts always emphasize that in order to develop the country's economy and increase reliance on domestic forces, planners must go through the introspection stage and look for the economic benefits of energy export in all parts of the world, and such an action can be in line with this economic recommendation. At the same time, in this method, due to the shareholding and investment made through the export of technical and engineering services, Iran will also be a partner in the output of offshore refineries, and in this way, in addition to meeting the country's gasoline needs from the investment profit, it is possible to export Surplus gasoline and earning foreign currency from the place of product export will also be provided. On the other hand; The export of technical and engineering services not only leads to foreign exchange for the country, but also keeps the lights of workshops and companies that produce domestic parts on and adds to job creation and increase of the national gross product. It is interesting that the said refinery was one of the oldest refineries in Venezuela, which operated with less than half of its capacity, but now, with the changes made by Iranian engineers in this refinery, its capacity has increased to 70,000 barrels, and Iranian experts emphasize which finally bring this figure to 140 thousand barrels per day. Now, this extraterritorial refinery has sent a message not only to the other party, but also to other countries that want this type of engineering services, that capable Iranian companies can handle this responsibility well. In any case, after the US sanctions on Venezuela, the passage of time and the lack of major repairs had caused this refinery to become worn out and out of service, but by reviving this oil refinery, Iran turned it into a part of its oil market. BY: Pooya Mirzaei

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