Presidents Hugo Chavez, of Venezuela, and Nestor Kirchner, of Argentina, on Wednesday formally opened the first joint-venture oil well in the Venezuelan state of Anzoategui: the Ayacucho 6 block, in Independencia, a municipality close to the Orinoco River.

The heavy crude well, MFD-29E, will be exploited by Petroleos de Venezuela (PDVSA) and Energia Argentina working together. The leaders traveled to the well from Puerto Ordaz, on the other side of the Orinoco, in Bolivar state, 512 km southeast of Caracas, where Kirchner arrived on Tuesday.

"The opening of this well represents the resurgence of Argentine petroleum activity from its ashes," Kirchner said; a reference to Kirchner's perception of the poor state of the industry after its privatization under the government of Carlos Menem. Chavez praised the well as part of grander efforts for South American energy integration.

The joint venture is part of the so-called Magnificent Reserve plan, in which Uruguayan state company the National Fuel, Alcohol and Portland Administration, is also a partner.

The strip, which has the world's largest crude oil reserves, calculated at 235 billion barrels, is a 55,300-square-km piece of land, which overlaps the states of Guarico, Anzoategui, Monagas and Delta Amarcuro, all in the east of the nation and all close to the Orinoco River.

PDVSA estimates Venezuela's total reserves at 316 billion barrels.

Earlier on Wednesday, in the town of San Tome Anzoategui, the two leaders signed a deal agreeing the export of Argentine meat to Venezuela.

Kirchner traveled to Venezuela accompanied by Foreign Minister Jorge Taiana, Planning Minister Julio de Vido, Economy Minister Felicia Miceli, the governor of Santa Fe province Jorge Obeid and Argentine ambassador to Venezuela, Alicia Castro. It was the president's fourth official visit to Venezuela.

Source: Xinhua