Turkey is negotiating to build low- cost housing in Venezuela in exchange for oil, Vatan newspaper said citing Bulent Gedikli, chief of economic affairs for the ruling Justice and Development Party.

Venezuela may pay 650 barrels of oil for every 100 square meters of housing built, the Istanbul-based paper cited Gedikli as saying. Venezuelan President Hugo Chavez has said the country needs to build around 2 million homes, Vatan said.

Turkey is also interested in oil-for-housing deals in other countries including Libya, Indonesia and Yemen, Vatan said citing Gedikli.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net