Venezuela, S. Africa to sign energy deal

Venezuelan President Hugo Chavez is expected to sign a bilateral energy agreement with South Africa next week paving the way for state-owned oil company PetroSA to acquire an oil-producing asset in Venezuela. PetroSA has held high-level discussions with its Venezuelan counterpart, Petroleos de Venezuela SA, on projects including oil exploration and the production of heavy crude oil in the Orinoco belt of Venezuela. Everton September, vice-president of PetroSA's new ventures unit, told Reuters on Monday Mr. Chavez's signature was needed to formalize a memorandum of understanding. “The MOU will come into effect immediately upon signature. PetroSA would like to acquire an oil producing asset in Venezuela [and] receive a direct crude allocation from PDVSA in the short term, between six months and one year,” Mr. September said via email. “In the medium term (between one and two years), offshore natural gas opportunities [and] opportunities that commercialize our GTL technology and LNG opportunities will be investigated.”