Workers at Venezuela's state-run oil company are preparing to take part, along with up to 5,000 troops, in a large-scale military exercise.

Venezuela Hugo Chaves recently admitted that the US had refused to provide assistance with technology acquired by Venezuela before his rise to power in 1999, including F-16 aircraft.

But he added that "friends of ours aboard and the knowledge of our professionals" had neutralised the problem.

Venezuela has said it fears that Washington may be planning to invade its territory, and the US has voiced concern about recent weapons acquisitions by the Venezuela, which has a close relationship to Cuba.