Venezuela, Belarus announce joint gas venture

Caracas, Mar 17 (EFE).- Venezuela and Belarus agreed to create a joint enterprise to extract natural gas in the Andean nation for shipment to the former Soviet republic, Venezuelan President Hugo Chavez said here Wednesday.

Chavez, accompanied by Belarussian counterpart Alexander Lukashenko, made the announcement at Miraflores palace during the last official event of the European leader's three-day visit to Venezuela.

The venture represents an expansion of Belarus's existing involvement in oil production in Venezuela's Orinoco Belt.

Chavez said the project will require an investment of $1.6 billion and that initial output will be around 40 million cubic feet per day, increasing by 2012 to 200 million cubic feet per day, enough - he said - to meet 25 percent of Belarus's energy needs.

The new company, Bielovenezolana S.A., will extract non-associated natural gas from the Soto, Mapiri and La Ceibita fields, north of the Orinoco River.

Chavez pointed out that Venezuela has proven natural gas reserves of 200 quintillion cubic feet, which he said would double within a few years to make the Andean nation the world's No. 4 gas power after Russia, Qatar and Iran.

The ceremony marking the end of Lukashenko's visit also saw the signing of 22 bilateral accords, including one calling for oil-rich Venezuela to supply 80,000 barrels per day of crude to Belarus and another mandating the creation of a Caracas-based marketing company to distribute Belarussian products and technology in Latin America.