AP reported that the presidents of Venezuela and Peru have reached an agreement for the Peruvian state oil company to invest in development of Venezuela's eastern Orinoco oil belt.

As per report, Venezuela's state oil monopoly will study a possible role in developing a petrochemical complex in Peru as well as helping Peru increase its production of heavy and extra heavy crude oil.

The formal agreement came during a Saturday meeting between Venezuelan President Mr Hugo Chavez and Peruvian leader Mr Ollanta Humala.

Later, representatives of the two governments signed agreements establishing mechanisms for transportation, storage, refining and marketing of hydrocarbons. Other pacts cover the sale in Peru of tractors and other farm implements made in Venezuela.

(Sourced from Associated Press)