Nairobi — Kenya and Venezuela have signed an agreement setting the stage for cooperation in oil exploitation and supply.

The agreement also calls for exchange of technical expertise on energy matters including exploitation of the renewable sources of energy.

The agreement, which has been pending for the last two years, was initiated by Energy Minister Kiraitu Murungi and was signed on Monday by Venezuelan Vice President and Minister for Energy and Petroleum Mr Raphael Ramirez and Kenya Vice President Kalonzo Musyoka.

The Venezuela VP said because of the distance between his country and Kenya, they were considering supplying affordable oil to Kenya from partners close to East Africa.

Mr Musyoka said the signing of the agreement affords Kenya the opportunity to access critical expertise in its quest to strike oil as well as the possibility of getting access to cheaper oil supply.

"Its our intention to engage the countries of South America for the benefit of the people of Kenya," said Mr Kalonzo.

Mr Kalonzo also held bilateral discussions with the President of Chile, Michelle Bachelet. Ms Bachelet said that her country will be holding a regional conference on agri-business in East Africa in late October.

"We want to partner with Kenya to promote trade between South America and Africa," she said.