Venezuela is set to reach an agreement to supply alternative energy sources to South Africa's booming industrial sector.

Coming just days after President Hugo Chavez confirmed that his country would also be supplying Paraguay with affordable crude oil exports, he is now in talks with his South African counterpart Thabo Mbeki regarding a similar arrangement.

Reports out of Johannesburg point to a deal having been reached, with the two premiers also in talks aimed at improving political, trade and economic relations between the two nations ahead of November's Africa-South American Community of Nations Summit.

"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," Foreign Affairs spokesman Ronnie Mamoepa noted in a statement.

At the same time, Gazprom has put the estimated oil reserves in place at Venezuela's Ayacucho 3 block at in excess of one billion metres, though more accurate results are set to be published within the next six weeks.

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