Venezuela, Spain to swap oil for technology

Economy

Spanish and Venezuelan Ministers of Foreign Affairs Miguel Ángel Moratinos and Nicolás Maduro, respectively, initialed on Friday in Madrid an energy cooperation agreement whereby Spain is to buy Venezuelan oil at a price yet to be set, in exchange of technology for development projects in Venezuela.

In this way, Moratinos and Maduro made a deal, as promised by Venezuelan President Hugo Chávez during his visit to Spain last July. They also announced the signing of a second agreement on railways. Both instruments total 3 billion Euros, said DPA.

The money to be used to purchase Venezuelan oil will go to a Venezuelan fund to acquire Spanish technology. Chávez had offered last July to sell Spain 10,000 bpd of oil at USD 100, when the Brent benchmark oil edged USD 123, twofold the current price.

Maduro reported that a joint taskforce is to specify the criteria and schemes of this cooperation. In his own words, the agreement will help "share the potentialities and Spanish companies have much to give" in terms of development of railway projects