BELARUS NEWS AND ANALYSIS

DATE:

26/03/2007

Chavez Grants Belarus Rights to Venezuelan Oil Fields

By Maria Levitov

March 26 (Bloomberg) -- Venezuelan President Hugo Chavez granted Belarus the rights to develop oil fields in the South American country, the government of the former Soviet republic said.

The fields will be able to pump up to 2 million tons of oil a year (40,000 barrels a day), the government said in a statement carried by its Belta news service today.

Chavez made the announcement during a meeting with Belarus officials in Caracas two days ago, Belta said.

The Venezuelan leader has said that establishing closer relations with countries such as Belarus, China and India will help Venezuela diversify oil sales. Venezuela, the third largest OPEC oil producer in February, according to Bloomberg data, plans to reduce the percentage of oil exports it ships to the United States, Chavez has said.

Belarus depends on Russia and other former Soviet Union countries for its energy supplies. Russia's trade volume with Belarus reached $1.4 billion in January, an 8.1 percent increase from the same period last year, Belta said. Russian exports to Belarus reached $868.9 million and were mainly composed of natural gas, oil products and metals, Belta said, citing the Belarusian Economy Ministry.

Belarus concluded agreements with Venezuela as of March 24, including a contract to export seismic exploration equipment and tractors to Venezuela, Belta said.

Source:

http://www.bloomberg.com/apps/news?pid=20601086&sid=aJmffeUEXuB4&refer=news