Russian oil pipeline operator OAO Transneft (TRNFP.RS) plans to start building a $600 million oil pipeline in Venezuela within three to four years, the company said Friday after signing a memorandum of understanding with Venezuela's state oil company.

Under the memorandum signed with Petroleos de Venezuela SA, or PdVSA, Transneft will build infrastructure for development of the Orinoco oil belt, including a 1,300 kilometer pipeline.

The memorandum was signed Thursday during a visit by Venezuelan President Hugo Chavez to Moscow alongside a number of other energy deals, including an agreement between PdVSA and a consortium of Russian oil companies to develop the Orinoco oil belt, which holds an estimated 235 billion barrels of heavy crude oil.

An investment plan will be drawn up within a year, Transneft said. PdVSA estimates costs of the 1,300 kilometer pipeline at $600 million.

Thursday, PdVSA and the Russian consortium of OAO Rosneft (ROSN.RS), OAO Lukoil Holdings (LKOH.RS), OAO Gazprom Neft (SIBN.RS), TNK-BP Ltd. and OAO Surgutneftegaz (SNGS.RS) also signed a separate memorandum to develop the Junin-6 field located in the Orinoco belt. A joint venture is expected to be set up by the end of this year.

Transneft said it plans to build a 700 kilometer pipeline from the Junin-6 field.

Company Web site: www.transneft.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937 8445; jacob.pedersen@dowjones.com