Venezuelan President Signs $1bn Energy Deal

Venezuela's President Chavez has signed energy deals worth over $1bn as part of a pledge to help Latin nations, during a tour of the region.

The Presidents of Bolivia, Venezuela and Argentina have signed the accords which form part of Mr Chavez's pledge to use Venezuelan oil to meet the energy needs of his Latin American neighbours.

Mr Morales and Argentina's leader Mr Kirchner finalised a $450m agreement to build a gas processing plant in the border region of Chaco and in the Amazon region north of La Paz.

The deal includes an accord with Bolivian leader Mr Morales last week to create a $600m energy joint venture, Petroandina.

On Saturday Mr. Chavez predicted that world oil prices would hit an all time high of $100 per barrel, including a threat that he could cut supplies to the United States.

The president was speaking at the third meeting of the Petrocaribe accord in the Caribbean, an agreement Venezuela launched in 2005 to provide oil and fuel on advantageous terms to Caribbean countries.

Reported by staff writer