Dec. 13 (Bloomberg) -- Venezuelan President Hugo Chavez and Cuban President Raul Castro signed agreements today to expand Cuba's oil-refining capacity.

The agreements during a meeting at the presidential palace in Caracas, Venezuela, include the expansion of the refining capacity at the Hermanos Diaz refinery in Cuba to 50,000 barrels a day from the current 22,000 barrels.

Castro, 77, is in his first trip abroad since formally assuming the presidency from his brother Fidel Castro earlier this year. Castro and Chavez, both critics of U.S. capitalism, agreed to form a holding company to expand Cuba's oil refining system and to build a new refinery in Cuba that will have the capacity to process 150,000 barrels of oil a day, according to the state-run Agencia Bolivariana de Noticias.

``You honor us with your visit, Raul,'' Chavez said today at the ceremony, in comments broadcast by state television. ``Today, Venezuela celebrates the 50 years of the Cuban revolution.''

Venezuela, the biggest oil exporter in Latin America, sends Cuba about 90,000 barrels of oil a day in exchange for services from thousands of Cuban professionals, including doctors, agricultural specialists and athletic trainers that Fidel Castro has sent to live in Venezuela since their agreement started in 2000.

Castro and Chavez also agreed to form ventures to develop software. The two countries carried out joint agreements worth $1.36 billion during 2008, according to a statement from Venezuela's information ministry.

To contact the reporter on this story: Matthew Walter in Caracas at mwalter4@bloomberg.net.

Last Updated: December 13, 2008 21:47 EST