As recently reported by CNN, South Africa and Venezuela sealed a major oil deal during a visit by Venezuela’s President Hugo Chavez, who touted it as an example of southern nations cooperating in a new strategic alliance.  As the article notes:

“…No details of the deals were immediately available, but they were likely to include plans for Venezuela to supply crude at preferential rates to South Africa’s PetrosSA state oil company.

Venezuela is also eager to explore South Africa’s pioneering gas-to-liquid technology, and PetroSA is looking to invest in oil exploration and production in Venezuela.

At a news conference after the signing of agreements, Chavez said Venezuela was interested in using South Africa’s oil storage capacity of some 45 million barrels and helping expand its refining capacity.

With the world in crisis, Chavez said it was imperative that southern nations unite behind a “new strategic agenda, to conduct a true strategic change in international relations.”

South Africa’s President Thabo Mbeki said several agreements signed Tuesday contribute to “the further empowerment of the countries of the south.”

He refused to say if South Africa would be getting preferential rates from Venezuela, but said “the object is to assist in reducing the costs of energy….”