Turkey invests in Iran to build oil refinery

According to a deal recently signed between Tehran and Ankara, the two sides have agreed to invest $2 billion to build a crude oil refinery in northern Iran.

The officials of Iran's oil ministry and Turkish energy ministry signed in a recent meeting the joint-venture agreement, which includes transit of Iran's gas to European countries through Turkey by the Turkish "Sam Petrol" Company, Iran's semi official Fars news agency reported Saturday.

The two countries have also agreed to create a joint firm, with each side holding 50% share, to transfer an annual volume of about 35 billion cubic meters of gas from Iran to Europe.

Iran, which sits on the world's second largest reserves of both oil and gas, is facing US sanctions over its civilian nuclear program.

The agreements between Iran and Turkey go against US increasing pressure against international companies who are interested to invest in Iran's energy sector.

Iranian officials have dismissed US sanctions against investment in Iran's oil and gas sector as inefficient, saying that they are finding partners from other regions instead.

Several Chinese and other Asian firms are negotiating or signing up to oil and gas deals.

"We have been under sanctions for a long time. This is not a new issue and there is no cause for concern," Iran's Deputy Oil Minister and head of the National Iranian Oil refining and Distribution Company, Seyyed Noureddin Shahnazizadeh said in October.

"[Iran's] refinery projects will be financed and implemented in partnership with domestic and foreign investors, with the exclusion of the US and Europe," he said.