Johannesburg — Venezuelan strongman President Hugo Chavez, whose Latin American populism and anti-US rhetoric have made him the darling of the international left, was due in SA last night for a two-day visit that will include the signing of a major energy co-operation agreement.

In an apparent bid to lessen SA's dependence on Middle Eastern oil, the government will sign an agreement to make the government of Venezuela a supplier of the crucial commodity to SA.

Venezuela has one of the largest oil reserves in the world and is the world's fifth-largest exporter. SA is the region's largest oil consumer - more than 68% of the Southern African Development Community's region's total - and the second-largest oil consumer in Africa after Egypt.

President Thabo Mbeki will sign the a memorandum of understanding on energy co-operation and an agreement on co-operation with the Chavez.

"Our government seems to be also looking for avenues for PetroSA to grow its business and experience," said analyst Dirk Kotze, a senior lecturer in politics at the from the University of SA.

Kotze said PetroSA is was getting involved in explorations and forming partnerships in other countries to help SA resolve the energy problems, especially looming oil shortages, faced by many countries.

Kotze said that Venezuela was seen as the ideological leader of the left in Latin America. Since SA had strong diplomatic relations with Cuba, it was a natural progression to strengthen both economic and diplomatic relations with Cuba's trusted left-leaning ally.

It is understood that PetroSA is considering acquiring an oil-producing asset in Venezuela.

It also plans to receive a direct crude allocation from Venezuela's state-owned petroleum company PDVSA in the short term, while working on offshore natural gas opportunities in the long term.

Future PetroSA ventures are expected to include promotion of its gas-to-liquid technology in the Latin American region.

PetroSA obtains, sources, refines and supplies 7% of SA's annual oil consumption and the government expects it to increase supply to 25%-to 30% by 2020.

Foreign affairs department spokesman Ronnie Mamoepa said yesterday that plan was to consolidate strategic political, economic and trade relations with Venezuela while advancing south-south relations.

SA exports machinery and mechanical appliances, base metals and chemicals to Venezuela and imports plastic and rubber. Last year, the value of SA's exports to Venezuela was estimated at R276m million and the imports were estimated at R530m.

Mamoepa said the discussions between the two leaders would focus on opportunities that could be expanded in the areas of energy, mining, trade, armaments, agriculture and public works. They would also discuss co-operation in the Non-Aligned Movement (NAM) and the G-77 group of developing countries plus China forums; and developments in Africa, Latin America and the Caribbean, including conflict resolution and peacekeeping in Africa.

Mamoepa said other issues of mutual interest included reform of the United Nations Security Council and the global financial architecture.