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Peru Garcia

Mending fences: President Alan Garcia has patched up Peru's relationship with Venezuela's Hugo Chavez

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Petroperu eyes Venezuelan oil

Peru's state energy company, Petroperu, is seeking a trade deal with Venezuela's state-run oil giant, PDVSA, for regular imports of crude for its refineries, Petroperu's president said today.

Last year, Petroperu imported around 30,000 barrels of crude per day via 24 separate purchases, mainly from Ecuador.

The Petroperu comments come two days after Peru's and Venezuela's presidents mended a rift between the two countries and agreed to discuss co-operation in the energy sector.

"We are interested in having an agreement on purchases of crude oil and diesel ... which would give them (PDVSA) a client with certain annual volumes and we'll get a predictable supplier," Cezar Gutierrez told Reuters.

On Monday, Peruvian President Alan Garcia and Venezuelan leader Hugo Chavez agreed to renew diplomatic ties between their countries.

The two South American countries recalled their ambassadors last year amid Peruvian claims that Chavez was interfering in Peru's presidential race to favour a leftist candidate.

Garcia also said during the rift he would not allow PDVSA to gain a foothold in Peru, as it had done in impoverished Bolivia by pledging to invest $1.5 billion in energy projects.

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