Iran medal, oil deals for birthday visitor Chavez

TEHRAN, July 28 (Reuters) What does one clamorous anti-U S president give another for his birthday? Iran's Mahmoud Ahmadinejad has lined up a medal and some oil investment deals for Venezuela's Hugo Chavez, but there could always be a surprise party when these two unpredictable orators team up.

Chavez, due in Iran today, his 52nd birthday, will be celebrating among friends. Caracas is one of Tehran's closest allies and Iranian investors are pouring money into oil projects, construction and tractor plants in the Andean state.

Both ex-military populists who take a hawkish stance in the OPEC oil cartel, Ahmadinejad and Chavez have a strong personal rapport.

This will be Chavez's fifth visit to Iran and the latest leg of his world tour.

Venezuela's delegation to the International Atomic Energy Agency has staunchly backed Iran's right to produce enriched uranium, decrying U S accusations that Tehran's nuclear scientists want to make bombs rather than power stations.

Iran's presidential office said there would be a reception for Chavez after 1500 GMT and that the burly former paratrooper would receive ''The High Medallion of the Islamic Republic of Iran''. The office declined to say why this was awarded.

The Venezuelan delegation, which includes Oil Minister Rafael Ramirez, are also expected to sign some energy deals before they leave the country on Sunday.

Gholamreza Manouchehri, head of Iran's Petropars company, said Chavez's visit would provide an occasion to sign a deal on his firm's long-term investment in Venezuela.

He told the oil ministry Web site that Petropars would sign a contract to provide services to Venezuela's Norte de Paria offshore gas field.

His firm's work certifying tarry, heavy crude in the Orinoco Belt will enter a ''new phase'', he said, but did not say whether this would involve signing a fresh contract.

Iranian firms have invested 1 billion dollars in Venezuelan ventures to date, and the industry ministry says it hopes to expand this to 9 billion dollars in the coming years.

Although ties are warm, diplomats and analysts say Chavez knows there are limits to his relations with Iran because of his dependence on the United States as a market for his oil.

While commercial deals are acceptable, arms contracts would probably be seen as too inflammatory, they say. Venezuela is looking mainly to Russia for military hardware.

Analysts also note that Venezuela will never be a foreign policy priority for Iran, whose interests are primarily Islamic.

''There's no natural affinity because Iran's Islamist leaders have always held ''Godless'' communists and socialists in contempt and look down at the the lax social restrictions in Latin America,'' said Karim Sadjadpour, Iran analyst at the International Crisis Group.

''The only common bond is a shared enmity toward the United States,'' he added.

REUTERS DKA VV1420