Blast kills 39 at Venezuela's biggest refinery

Fire is seen in the affected area after an explosion at Amuay oil refinery in Punto Fijo in the Peninsula of Paraguana Aug 25, 2012. An explosion tore through Venezuela's biggest oil refinery on Saturday, killing at least 26 people, wounding more than 50 and halting the facility's operations in the OPEC nation's worst industrial accident in recent memory.?[Photo/Agencies]

PARAGUANA/CARACAS, Venezuela - A big explosion ripped off Venezuela's biggest oil refinery early Saturday morning, killing 39 people including 18 National Guard members, Vice President Elias Jaua said.

Some 80 others were wounded, officials said.

The blast, caused by gas leak, occurred at the Amuay refinery at 1:11 am(0541 GMT), which produces as many as 645,000 barrels of crude oil per day, said Venezuelan Energy Minister Rafael Ramirez.

The reason for the gas leak was still to be determined, he added.

The killed National Guard troops were protecting the refining facilities in Amuay town, located in the Paraguana Peninsula overlooking the Caribbean Sea in western Venezuela, Jaua said after traveling to the area.

A 10-year-old child was also among the dead.

Jauna said military ambulances rushed to the site for the injured, most of whom suffered slight injuries and were later discharged from hospital after some treatment.

The powerful blast also caused severe damage to nearby houses and shops, and forced the refinery to shut down.

The Amuay refinery is part of the Paraguana Refinery Complex, the second biggest of the world's oil refineries, which is capable of producing 955,000 barrels per day. Venezuela is South America's biggest oil producer and the world's fifth oil exporter.

President Hugo Chavez declared three days of national mourning for the catastrophe.

Chavez, who has been in presidency for 14 years and fighting cancer since last June, is still leading in the run-up to the Oct 7 presidential election.

He has enjoyed wide domestic support mainly due to his oil-financed welfare spending and his enduring close connection with the poor majority.

Officials said the situation at the Amuay refinery had been put under control and there was no risk of further explosions.

Ramirez said the refinery was expected to resume operation within two days. The blast wouldn't have a major impact on export and domestic supply as the country "has enough fuel supplies," he said.

A founding member of OPEC, Venezuela produces an average of 3 million barrels of crude oil per day, and expects to lift the capacity to 4 million within two years.

The oil industry is the economic backbone of Venezuela, which, with 297 billion barrels, has surpassed Saudi Arabia as the country of the world's biggest crude oil reserves.

A total 22.8 percent of Venezuela's national budget, or the equivalent of $15.7 billion, would be generated by oil revenues in 2012, according to official figures.