Print

Mail

wiki links

Venezuela, Brazil formalize economic accords in Caracas

Venezuela and Brazil signed accords on Thursday pledging to boost trade and link their economies through energy cooperation as Venezuelan President Hugo Chavez and Brazilian President Luiz Inacio Lula da Silva seek to deepen ties.

Chavez said Venezuela will provide 100,000 barrels of crude oil per day to a refinery being built in Brazil by the two countries' state-run oil companies -- Petroleo Brasileiro SA and Petroleos de Venezuela SA (PDVSA).

Petrobras will have a 60 percent stake in the refinery in the state of Pernambuco, with PDVSA holding 40 percent under an agreement signed by officials on Thursday.

It was one of 12 commercial accords finalized after Chavez and Silva met privately. Petrobras also is to help quantify oil reserves in Venezuela's lucrative Orinoco River basin.

Silva also said Brazil hopes to create "a balance in our commercial relationship" -- which has recently seen Brazilian exports to Venezuela rise rapidly while its imports from Venezuela have fallen.

Brazilian exports to Venezuela grew to US$3.8 billion in the first 10 months of this year, a rise of 29 percent over the same period last year, Venezuela's state-run Bolivarian News Agency, or ABN, reported.

In the same period, Vene-zuela's exports to Brazil were US$296 million, a decline of 44 percent, ABN reported.

Venezuela's economy has been booming, propelled by high oil profits, and imports have risen sharply, including food products and industrial supplies from Brazil.

Silva said he expects Brazil will also become an increasingly major oil supplier and may eventually join OPEC. Last month the country announced the discovery of an offshore reserve estimated to hold 5 billion to 8 billion barrels of oil.

"We still aren't in OPEC, but we're close," he said.
This story has been viewed 700 times.