Venezuela, Peru in pacts on oil investments, trade

The Associated Press

CARACAS, Venezuela — The presidents of Venezuela and Peru have reached an agreement for the Peruvian state oil company to invest in development of Venezuela's eastern Orinoco oil belt.

Venezuela's President Hugo Chavez, left, holds up an example of Venezuela's oil and speaks to oil workers as Peru's President Ollanta Humala watches during their visit to an oil installation in the faja petrolifera del Orinoco, or Orinoco oil belt, in the state of Monagas, Venezuela, Saturday Jan. 7, 2012. Chavez and Humala reached an agreement for the Peruvian state oil company to invest in development of Venezuela's eastern Orinoco oil belt. Venezuela's state oil monopoly will study a possible role in developing a petrochemical complex in Peru as well as helping Peru increase its production of heavy and extra heavy crude oil. (AP Photo/Ariana Cubillos)

Venezuela's President Hugo Chavez, left, Peru's President Ollanta Humala, front center, and Venezuela's Minister of Energy and Petroleum Rafael Ramirez, right, looks at documents during a visit to oil installations in the faja petrolifera del Orinoco, or Orinoco oil belt, in the state of Monagas, Venezuela, Saturday Jan. 7, 2012. Chavez and Humala reached an agreement for the Peruvian state oil company to invest in development of Venezuela's eastern Orinoco oil belt. Venezuela's state oil monopoly will study a possible role in developing a petrochemical complex in Peru as well as helping Peru increase its production of heavy and extra heavy crude oil. (AP Photo/Ariana Cubillos)

Venezuela's President Hugo Chavez, second left, speaks with Peru's President Ollanta Humala upon his arrival at the airport in Puerto Ordaz, in Venezuela's Bolivar state, Saturday, Jan. 7, 2012. Humala is on a one-day visit to Venezuela. (AP Photo/Ariana Cubillos)

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Venezuela's state oil monopoly will study a possible role in developing a petrochemical complex in Peru as well as helping Peru increase its production of heavy and extra heavy crude oil.

The formal agreement came during a Saturday meeting between Venezuelan President Hugo Chavez and Peruvian leader Ollanta Humala.

Later, representatives of the two governments signed agreements establishing mechanisms for transportation, storage, refining and marketing of hydrocarbons. Other pacts cover the sale in Peru of tractors and other farm implements made in Venezuela.

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January 07, 2012 08:41 PM EST

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