Pretoria — Bilateral agreements signed between South Africa and Venezuela proves the relationship is "real, actual and practical," says President Thabo Mbeki, after meeting with Venezuelan President Hugo Chavez on Tuesday.

"The agreements that have been signed here today show that, indeed, the relationship has taken on a strategic character.

"The relationship is real, actual and practical. We spoke of a strategic partnership which means we will learn from each other.

"We will draw on each others' strengths and weaknesses, and we will act in partnership to deal [with a number of] issues raised," Mr Mbeki said.

Discussions between Mr Mbeki and his counterpart also looked beyond bilateral relations to the situation in Venezuela, South Africa, South America, Africa and the world, Mr Mbeki said.

Both presidents expressed that they were very pleased that the issue of the strengthening and enhancing of South-South relations received attention.

"It will be a mutually beneficial agreement and relationship," Mr Mbeki added.

Agreements and Memorandums of Understanding (MOUs) were signed on energy, upstream oil and gas, and offshore oilfields in Venezuela, said President Mbeki.

"The agreements we have signed provide for the further detailing and discussion to expand co-operation in the field of oil and energy.

"One main purpose of the agreements is to cut out the intermediary. So you have direct state-to-state relations in the area.

"This will remove certain costs reducing the price somewhat," said Mr Mbeki.

President Chavez said they were realising more and more that it was essential to pave a true path towards the future together.

"We are a mix of Africa and America ... White, Black, Indian, and [therefore] we greet you [South Africa] from the bottom of our hearts as we are in Mother Africa.

"The struggle for liberation in Latin America has always been inspired by the struggle for liberation in South Africa and Africa," said President Chavez.

The Venezuelan President highlighted that he would like the relationship between the two countries to attain a profoundly strategic level.

"The world is faced by a financial, food, energy, ecological and moral crisis ... and it is therefore of the utmost importance to unite the people of the South.

"I would like to stress that the energy and oil agreements that were signed should all be implemented as soon as possible.

"PetroSA should immediately go to Venezuela to work with us to exploit the vast opportunities in oil," President Chavez said.

Venezuela has one of the largest oil reserves in the world and is the world's fifth-largest exporter.

South Africa is the region's largest oil consumer- more than 68 percent of the Southern African Development Community's total consumption- and the second-largest oil consumer in Africa after Egypt.

In July, Minerals and Energy Minister Buyelwa Sonjica visited Venezuela and the Department of Foreign Affairs said the visit had paved the way for closer cooperation between the two countries.

Venezuela has one of the largest oil reserves in the world and developing commercial relations in this sector could provide alternative sources of energy to South Africa, the department said.

The deal is expected to provide PetroSA with immediate and direct crude oil from the Venezuela's state-owned petroleum company at a preferential rate.

Last week, South Africa's State-owned oil company PetroSA reportedly said that it would acquire an oil-producing asset in Venezuela, following the visit by President Chavez to South Africa.

The deal also seeks to pursue commercial opportunities around gas-to-liquid technology - an area where PetroSA is a world leader with enormous capacity.