Venezuela signs oil deal with Ecuador

QUITO, Ecuador, (UPI) -- Ecuador and Venezuela have signed an agreement whereby Venezuela will refine some 100,000 barrels daily of Ecuadorian oil, El Comercio reported Wednesday.

Officials in Quito said that the deal will save Ecuador an estimated $300 million a year.

Earlier this month, Ecuador kicked out U.S. oil company Occidental Petroleum for violating the country's rules of operation.

Venezuelan President Hugo Chavez has been steadily strengthening energy ties with other South American nations including Bolivia, recently signing an accord for bolstering Bolivia's gas sector.