Petrobras & PDVSA to Finalize Cooperation Deal Soon

An agreement between Petrobras and PDVSA to broaden commercial ties and establish exploration, refining and production links between the two countries will be finalized by the end of this month, according to local news sources.

Quoting Nestor Cervero, Petrobras' international director, the news service said the companies will work in partnership to explore oil in ultra deep waters off the coast of Venezuela. Geological studies by Petrobras have been prepared to assess Venezuela's most promising offshore fields, the director said.

Under the agreement, which was first announced in April when President Hugo Chavez visited Brazil's President Luiz Inacio Lula da Silva, PdVSA would debut in downstream activities in Brazil, which would include a significant stake in a planned $2 billion refinery. Cervero said several details of the agreement still needed to be worked out.