HAVANA, (Reuters) – Cuba and Venezuela signed cooperation deals worth nearly $3 billion on Saturday,  underscoring Caracas’ role as the communist-run island’s  closest political and commercial ally.

Venezuela, an OPEC member, has become a vital source of  energy and trade for Cuba in recent years and it exports 98,000  barrels of crude a day to the cash-strapped Caribbean nation on  favorable financing terms. “We’ve signed 264 contracts worth a total of $2.951  billion,” Venezuelan President Hugo Chavez said in a televised  speech, saying another 20 similar agreements would be inked  later this month.

The cooperation deals relate to health, fishing, education  and sports projects and the countries will also form at least  seven joint state-run companies in the sugar, aluminum,  transport and farming industries.

Cuba, which is heavily dependent on imports of fuel and  food, pays part of its Venezuelan oil bill with the services of  40,000 doctors and other professionals.