Americas News

Chavez promises Nicaragua 200-year oil supply

Jan 13, 2007, 2:00 GMT

Managua - Venezuelan President Hugo Chavez Friday promised his Nicaraguan counterpart a 200 year supply of oil.

The announcement came at the end of Chavez's three-day-long visit for the inauguration of Nicaraguan President Daniel Oretega and for diplomatic and economic talks.

Venezuela will supply Nicaragua with 10,000 barrels of affordable oil per day, and build a refinery and 32 power stations that will produce 80 megawatts of electricity.

'The oil that Nicaragua will need for the coming 200 years lies in Venezuela,' Chavez said.

Ortega on Thursday officially joined Venezuela's leftist regional coalition, the Bolivarian Alternative for the Americas (ALBA).

ALBA was devised by Chavez, an outspoken US critic,as an alternative to US efforts to develop a Free Trade Area of the Americas (FTAA.)

However, Ortega had earlier stressed that Nicaragua will abide by the Central American Free Trade Agreement (CAFTA) with the United States, though he said the treaty contains what he called 'asymmetries' that do not benefit all of Nicaragua.

Agreements between the countries also cover agriculture, housing, health and education.