Venezuela stands by Syria diesel supplies

By Deisy Buitrago

CARACAS (Reuters) - Venezuela has sent at least two shipments of diesel fuel to Syria recently and will continue to supply President Bashar al-Assad's government "whenever required" despite Western sanctions, Energy Minister Rafael Ramirez said on Monday.

Ramirez was confirming information this month showing President Hugo Chavez's administration had emerged as a rare supplier of diesel to Syria, potentially undermining Western measures over its crackdown on anti-government protests.

"We have been sending at least two shipments," Ramirez, who is one of the most powerful men in Chavez's socialist government, told reporters in Caracas.

The controversial Chavez, 57, who casts himself as part of an international "anti-imperialist" alliance, has been a vociferous supporter of the Syrian leader.

"We have a high level of cooperation with Syria, a besieged nation, whom the transnational interests want to bring down," Ramirez said, adding there would be more shipments "whenever required."

Also president of Venezuela's state oil company PDVSA, Ramirez said the conflict in Syria and Western sanctions on Iran over its nuclear policy had destabilized the global oil market.

But Venezuela had no intention of stepping in to replace Iranian fuel supplies, affected by Western sanctions, he said.

"We do not agree with any blockade or sanctions on any country, especially a brother OPEC member."

Chavez, in Cuba for an operation this week after a lesion was discovered where he had cancer surgery last year, is a close ally of the Iranian President Mahmoud Ahmadinejad.

Ramirez was speaking at a signing ceremony with a group of investors from China, one of Venezuela's main business partners and its principal line of foreign credit.

He confirmed that Chinese state investment company CITIC will take a 10-percent participation in the Petropiar heavy oil upgrader - a joint venture between PDVSA and U.S. oil company Chevron in the southern Orinoco belt.

Petropiar has a 180,000 barrel per day capacity.

"We've agreed their participation, we're just deciding the price," he said.

CITIC is also seeking a maximum 20-percent share in the huge Las Cristinas gold project, Ramirez said.

Chavez announced last week CITIC'S imminent involvement in the long-troubled gold project, which is believed to be one of Latin America's largest with an estimated 17 million ounces in reserves.

(Additional reporting by Diego Ore; Writing by Andrew Cawthorne; Editing by Paul Simao)