BELARUS NEWS AND ANALYSIS

DATE:

08/12/2007

Belarus, Venezuela to Produce 50,000 Barrels a Day

By Matthew Walter

Dec. 8 (Bloomberg) -- Belarus and Venezuela will begin producing 50,000 barrels of oil a day in the South American nation with the next few years, Venezuelan President Hugo Chavez said.

Venezuela has given approval for the state oil company of Belarus to operate in three more blocks, Chavez said today in comments broadcast by state-owned Venezolana de Television. Venezuela and Belarus began exploration and production operations this year.

``This bilateral cooperation is vital for us,'' Chavez said today at an oil installation in Venezuela's Anzoategui state.

Chavez and Belarus President Alexander Lukashenko, both critics of the U.S., also signed agreements today to share military technology and deepen trade ties.

State-owned Petroleos de Venezuela SA and Belarus Neft have already started operating in Venezuela's Junin I block, where they'll invest $120 million to drill nine wells, the Venezuelan information ministry said today in an e-mailed statement.

The companies expect to certify that the block has 20 billion barrels of crude oil in place, according to the statement.

Source:

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