March 15, 2006
Venezuela and Uruguay sign deals oil deals during presidential meeting

(AP Worldstream) - "Venezuelan leader Hugo Chávez signed a series of accords with Uruguay's President, including one to buy a share in more than 150 gas stations across Argentina.

Chávez called Venezuela's many business deals with President Tabare Vázquez's government an example of South American integration.

'We are exchanging oil for cattle, oil for software, oil for housing, 'Chávez said. 'We've already sent Uruguay nearly 7 million barrels of oil.'

The leaders signed a deal for Venezuela's state-run oil company Petróleos de Venezuela SA, or PDVSA, to buy half of the Argentine subsidiary of Uruguay's state oil company, Ancap, and a 49 percent stake in 155 gas stations it owns in Argentina.

Venezuela will spend US$15 million (A12.5 million) on the deal, Oil Minister Rafael Ramírez said.

Among other accords signed, the leaders pledged cooperation in mining, housing, health, technology and communications via a satellite that Venezuela is looking to buy (...)

Chávez _ whose country is the world's No. 5 oil exporter already has approved a series of oil deals with Vázquez's leftist government, one of several key allies in the region.

Uruguay buys up to 43,800 barrels of Venezuelan oil a day under preferential terms that allow it to pay up to 75 percent of the bill with goods and services.

Uruguay, which pumps no oil domestically, sent a shipment of 887 cattle this week. Beef and powdered milk sent to Venezuela by Uruguay has been sold through state-run discount supermarkets.

Chávez's opponents call such oil deals giveaways that the president is using to strengthen political alliances as tensions have grown with the U.S., the top buyer of Venezuelan oil.

Chávez argues he isn't giving away anything but rather is pursuing win-win projects that boost regional integration.

'We thank President Chávez because we know he has supported us in this fair recovery of the small countries of South America,' Vázquez said.

Venezuela is helping finance an expansion of La Teja refinery in Uruguay. The work, estimated to cost some US$600 million (A503 million), will eventually double the refinery's capacity and allow it to handle heavy Venezuelan crude, Ramírez said.

Chávez also has invited Uruguay to help explore for oil in the eastern Orinoco tar belt to quantify its heavy crude reserves, estimated at 230 million barrels.

Vázquez reiterated that his government, like that of Chávez, will not sign a free trade agreement with the U.S. The two agree the proposed Free Trade Area of the Americas would be disastrous for small Latin American economies".