Venezuelan President Hugo Chavez on Saturday promised Paraguay's new leftist president a steady supply of fuel to prevent shortages that could cause civil unrest.
Ex-priest President Fernando Lugo will receive "all the oil Paraguay needs" from Venezuela, Chavez said. Venezuela's state oil company later announced that an accord signed by the two leaders guarantees Paraguay up to 23,500 barrels of oil and derivatives a day.
Paraguay's consumed 27,410 barrels of oil products a day in July, according to the U.S. Energy Department. The poor South American nation has no reserves and depends solely on imports for its petroleum needs.
The deal would significantly boost the amount of oil Venezuela sends to Paraguay, if the promised supply is delivered. In 2007, Petroleos de Venezuela SA shipped the South American country _ then governed by the conservative Colorado party _ just 1,000 barrels of oil products a day, the company said in its latest annual report.
A spokesman for PVDSA declined to give additional details on how the oil supply guarantee would work.
The socialist Chavez has used his nation's oil wealth to send subsidized crude to like-minded and poverty-stricken nations across Latin America and the Caribbean, and has even sold discounted heating oil to poor families in New England and other parts of the U.S. through Venezuelan-owned refining company Citgo Petroleum Corp.
Venezuela was the world's sixth-largest exporter of crude in 2006, the last year for which comparative data was available.
The energy accord between Paraguay and Venezuela comes 8 days after Lugo couldn't find diesel fuel for his SUV at a local gas station. He suggested that Paraguay's outgoing administration might be withholding fuel supplies to make it harder for him to govern.
Venezuela also vowed last week to provide Paraguay a one-time supply of 440,476 barrels of diesel to stave off shortages. Paraguay consumes 18,000 barrels of diesel daily.
Chavez said Venezuela would guarantee oil for Paraguay _ all it "needs for this century, for development for the people, industry and agriculture."
Paraguay's top export is soy, and its farm industry depends heavily on diesel fuel to power farm equipment and trucks that transport the crop.
Chavez announced the energy assistance Saturday after traveling with Lugo to the small town where he served for 11 years as a Roman Catholic bishop.
Lugo made history with his inauguration Friday, shoving aside the Colorado Party that held Paraguay's presidency in a state of one-party rule for the last 61 years.
___
Associated Press Writers Alan Clendenning contributed from Asuncion, Paraguay, and Rachel Jones from Caracas, Venezuela.
