Chavez signs new energy deal with Cuba

Sun Dec 23, 2007 1:49am EST
 
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HAVANA (Reuters) - Venezuelan President Hugo Chavez bolstered his cooperation with Cuba on Saturday by signing energy, farming and finance accords, including a deal to expand of one of his socialist ally's oil refineries.

The Venezuelan leader, a strident foe of Washington's "imperialist" policies, is Havana's closest ally and the petroleum deals have helped Cuba's economy stay afloat.

Chavez attended the signing ceremony in Santiago de Cuba with Raul Castro, who has governed Cuba since his brother, Fidel Castro, handed over power after surgery. Fidel Castro has not appeared in public for more than 16 months.

"We are together and will be together forever," Chavez said at the close of the event. "We are conscious that we are one nation."

Chavez met for more than two hours with Fidel Castro in Havana on Thursday, the Cuban press has reported. So far no images of their meeting have been released.

Venezuela, an OPEC member and a major oil supplier to the United States, already provides 92,000 barrels per day of crude to Cuba on preferential terms in return for medical and other services.

One of the deals inked on Saturday will expand the capacity of Cuba's Cienfuegos crude refinery from 65,000 bpd to 150,000 bpd. Chavez attended a ceremony on Friday opening the Soviet-era refinery after Venezuela helped refurbish it.

Other agreements included helping to restore a pipeline from the refinery and expanding agriculture and mining projects.

Buoyed by high crude prices, Chavez has used his country's oil wealth to try to build alliances in Latin America and the Caribbean and counter U.S. influence. Washington calls him a menace to regional democracy.

(Reporting by Patrick Markey; Editing by Eric Beech)

 
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