TEHRAN (FNA)- Iran and Ecuador have agreed to build an oil refinery in the Latin American country, Iranian Oil Minister Gholam Hossein Nozari said.
Nozari and his Ecuadorian counterpart Galo Chiriboga Zambrano have signed a memorandum of understanding on cooperation in the oil sector.
Nozari said the construction of the refinery will be co-financed by Iran, Ecuador and Venezuela.
The two oil ministers also agreed to construct a petrochemicals production unit in Ecuador, he added according to press tv.
Ecuador’s oil minister said that the two countries would establish an oil company through which the joint energy projects can be implemented.
Both Iran and Ecuador are members of the Organization of Petroleum Exporting Countries (OPEC), which accounts for about 40 percent of the world’s oil production.
Ecuador, the fifth largest South American oil producer, currently has three refineries with a total refinement capacity of 110,000 barrels of oil per day, making it the smallest producing member of OPEC.
Venezuela and Ecuador agreed in July to construct a refinery capable of producing 300,000 barrels of oil per day in Ecuador’s coastal province of Manabi.