Chavez seeks help from foreign nations

(BRASILIA, Brazil) Venezuelan President Hugo Chavez on Thursday announced a plan to involve European and Latin American countries in solving the economic and political turmoil that has paralysed his country and roiled international oil markets.

Mr Chavez, who faces a month-long strike that has hobbled his country's oil industry, said the 'Group of Nation Friends' would also involve the Organisation of Oil Exporting Countries and would help mediate talks between his government and the opposition groups that seek his ouster.

'This has to be the way out (of the crisis),' Mr Chavez said. 'There is no other way.'

He said the plan was the result of talks he held in Caracas with foreign diplomats a few days ago. 'I thought it was a good idea and began immediately making phone calls,' he said, but did not specify which countries he had contacted.

Mr Chavez spoke at a two-hour news conference in Brasilia after an overnight meeting with Cuban leader Fidel Castro. Both were in Brazil to attend the inauguration of the country's new president, former union leader Luiz Inacio Lula da Silva.

Mr Chavez also called for the creation of a pan-Latin American oil company, to be called Petro-America, in an attempt to increase cooperation among state-owned oil industries. 'It would become a sort of Latin American Opec,' he said, adding that the company could include Venezuela's PDVSA, Brazil's Petrobras, Colombia's Ecopetrol, Ecuador's PetroEcuador, and Trinidad and Tobago's PetroTrinidad.

Also on Thursday, Mr Chavez asked the Brazilian president to consider sending technical experts from Petrobras to replace some of the 30,000 Venezuelan state oil company workers who have walked off their jobs.

In Caracas, opposition legislator Alejandro Armas said the opposition had already proposed an international effort to mediate the dispute.

The idea drew support from opposition labour leader Manuel Cova, secretary general of the one million-member Venezuelan Workers Confederation. 'Whatever international initiative leading to an electoral solution is welcome,' he said.

In London, crude oil rose as traders doubted whether Venezuela would soon recover from the month-long strike, even though Mr Chavez said the country would have oil production back to three million barrels a day in 45 days. Output is now 172,000 barrels a day, strikers said.

Brent crude oil for February delivery was 40 US cents, or 1.4 per cent, higher at US$29.83 a barrel at 10.59am London time. - AP, Reuters