Iran’s Oil Minister Javad Owji and his Venezuelan counterpart inked the contracts to develop oil fields and terminals and restore refining and petrochemical capacities.

Tehran-Caracas cooperation in the oil sector has been promoted since Iran’s 13th (incumbent) administration took over.

Their relations entered a new phase last year, when the two sides signed a contract to develop Venezuela’s refineries through using Iran’s technical know-how and equipment.

Iran and Venezuela hold about 40 percent of the world’s oil reserves and both countries’ oil sectors have been hit by U.S. unilateral sanctions.

In spite of sanctions, Iran has managed to make 85 percent of equipment needed by the oil industry, not only meeting domestic needs with homegrown equipment, but also exporting its technical and engineering services to regional countries and other oil-rich states, including Venezuela.

Accompanied by a number of ministers and other top officials, Iran’s President Seyyed Ebrahim Raeisi on Monday started his tour of Venezuela, Nicaragua, and Cuba.