The Uruguayan National Administration of Fuels, Alcohol and Portland (Ancap) will put out to tender the refitting of its refinery after dismissing a project involving the execution of the works by state-run oil holding Petróleos de Venezuela (Pdvsa), Uruguayan Minister of Industry and Energy Daniel Martínez told AFP.

"There is no project with Pdvsa, because in order to prevent clashes (with the opposition), the government resolved not to undertake this project directly with Venezuela, but by means of an invitation to tender to see who is going to fund it," he said.

The refinery overhaul needs "a deep investment," estimated by Martínez at USD 1 billion.

The opposition "did not understand the strategic value of the undertaking with Pdvsa and rather than in the national interest, the topic turned into a political issue."

Uruguay and Venezuela initialed in 2007 a memorandum to organize a company in order to refit the refinery and sell the excess abroad.