Caracas, Feb. 17 (Bloomberg) -- Venezuela signed a letter of intent to invest in Cuba's idled Cienfuegos oil refinery and said a final decision on the project will be ready in 10 days.

Venezuelan Energy and Mines Minister Ali Rodriguez said state oil company Petroleos de Venezuela SA could go ahead with a plan to refurbish the refinery on the southeast coast of Cuba. The agreement would entail an undisclosed investment by Venezuela, and would allow South America's largest oil producer to refine some of its own oil and sell more of its oil-based products in Cuba.

``Cuba is an important market for us, and we'll make a final decision on this investment within days,'' Rodriguez said.

Venezuela is seeking greater market participation for its crude and products throughout Latin America and the Caribbean. PDVSA has mulled over investments in the Cienfuegos refinery for months, and in November abandoned a plan to buy a part of it outright for about $200 million.

The new plan would include a supply contract to the refinery for Venezuelan oil. It also would allow Venezuela to increase its share of Cuba's market for lubricants and other products, Rodriguez said. Venezuelan officials earlier said the refinery could process about 70,000 barrels a day of oil.

Venezuela already provides most of the oil used in Cuba, PDVSA said. The U.S.-embargoed island has suffered from oil shortages since the early 1990's.

Feb/17/2000 14:23

(C) Copyright 2000 Bloomberg L.P.

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