The private sector knowledge-based firm signed a contract in the Venezuelan capital Caracas to export its products to the Latin American country.

Based on the contract, the company is to make automation systems, telecommunication systems, precision tools, and other equipment and install them in five gas compressor stations.

This is the first time that an Iranian knowledge-based firm under the patronage of the Ministry of Petroleum signs a deal with a foreign company.

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.