All smiels: Hugo Chavez in Tokyo after today's signing ceremony
Japan strikes Venezuela energy pact
Japan and Venezuela today agreed a broad co-operation deal which will see them jointly develop oil and gas projects in the Latin American nation.
State-affiliate Japan Oil, Gas & Metals National Corp (Jogmec), Inpex and Mitsubishi Corporation will pursue a joint feasibility study with Venezuela on the Orinoco oil belt in the next two years, Energy Minister Rafael Ramirez said at a signing ceremony in Tokyo.
The oil belt may potentially have reserves of up to 6 billion barrels, and the ability to produce about 200,000 barrels per day, said Ramirez, who is also the head of the state oil company PDVSA.
Venezuela also agreed with four Japanese trading houses, Mitsubishi, Itochu, Mitsui & Co and Marubeni Corporation, to begin work on the development of a gas field for liquefied natural gas, Ramirez told Reuters.
If realised, it could allow much of the LNG to be brought over to Japan beyond 2013, he said.
Separately, Venezuela signed a memorandum of understanding with Japan Bank fo International Co-operation (JBIC), Mitsubishi and Itochu for loans totalling $1.5 billion to finance the upgrade of two refineries.
This follows a credit line of $3.5 billion opened in 2007.