MercoPress. South Atlantic News Agency

Uruguay and Venezuela will further increase energy related cooperation

Maduro will be meeting with Mujica when he visits Uruguay in the second week of March

Uruguay will renew the contract for the purchase of Venezuela oil and accept the stake increase of that country in a local bio-fuels corporation during the scheduled visit of President Nicolas Maduro to Montevideo next month; it was announced by the Uruguayan Foreign affairs ministry.

 The two countries state-run oil companies, Ancap and PDVSA, will also sign a technical advice agreement by which Uruguayan experts will help Venezuela in the mounting of a bio-fuels company.

The agreements were finalized during a recent visit to Caracas of Ancap's president Jose Coya and another member of the board, Juan Gomez.

“We established the bases to renew the contract for the purchase of crude, during the visit of President Maduro to Montevideo on the second week of March”, said Gomez. “The idea is to continue developing these contracts because they are very convenient for both sides”.

During the joint meetings in Caracas the possibility of purchasing from a PDVSA subsidiary mineral coal or coke, pet-coke, for Uruguay's two new cement plants was also analyzed and considered. Likewise the joint exploitation of the so called crude mature wells, for which an association was considered. A memorandum of understanding on the issue will also be signed next.

Regarding Uruguay's bio-fuels company Alcoholes del Uruguay, Venezuela's PDVSA is interested in increasing its stake to a 25% participation. The other partner is Uruguay's state oil company Ancap. Finally the possibility of exchanging Venezuelan lubricants for clinkers from Uruguay, a main component for cement, will also be addressed.

Despite the tempting financial and credit conditions for the purchase of Venezuelan oil, members from the opposition again have pointed out that Venezuelan oil is 'too heavy' and Uruguay had to invest heavily to adapt the country's refinery and in a 'desulphurization' plant to ensure the purity of fuels, which for new cars is essential.