Venezuela to sell Iran 20,000 barrels of petrol per day

"Venezuela has agreed to export 20,000 barrels of petrol daily to Iran from October in a deal worth 800 million dollars," Chavez told reporters in the northeastern city of Mashhad, local media reported.

He gave no indication of the duration of the agreement.

"This amount will be deposited in a fund established in Iran and will be used to finance purchase of machinery and technology from Iran," Chavez added.

"It was also agreed that both sides will within the next 30 days inject 100 million dollars in the joint Iran-Venezuela bank," he said.

Chavez flew earlier Sunday from Tehran to Mashhad, Iran's holiest city and the resting place of Shiite Islam's eighth imam, Imam Reza, in the company of his host President Mahmoud Ahmadinejad.

Because of a lack of domestic refining capacity, oil-rich Iran is dependent on petrol imports to meet about 40 percent of domestic consumption.