The state oil companies of Uruguay and of Paraguay have signed a cooperation agreement, the local press reported Friday.

The agreement between Administracion Nacional Combustible and

Alcohol y Portland (Ancap) makes joint business possible, Ancap's vice-president Raul Sendic was quoted as saying in Asuncion, Paraguay, where he signed the agreement.

Paraguay sees itself as a future client since it needs to purchase at least 3,000 cubic meters of fuel that Ancap may supply after it extends its refinery.

The Uruguayan government signed a prospecting and exploitation agreement with Venezuela allowing some oil wells in the Orinoco Strip to exploit oil that will be refined in Montevideo.

Uruguay has neither oil nor gas in its territory and has to import crude oil for its La Teja refinery.

Source: Xinhua