Petrobras, PDVSA plan tieup

Petrobras, PDVSA plan tieup

BRASILIA (AFP): Brazil's Petrobras and Venezuela's PDVSA are studying establishing a strategic alliance of the two state oil giants in a venture that could be named Petroamerica, Venezuelan President Hugo Chavez said here Friday.

"All the details haven't yet been defined and for the time being we are talking about a something at a strategic level, but everything should be defined in the coming weeks," he told a news conference following talks with President Fernando Henrique Cardoso.

The presidents said in a joint statement they "agreed on the special importance of energy integration as a fundamental pillar of closer links between the two countries."

In this context they are giving "special priority to the creation of an effective association of interests between Petrobras and PDVSA," as the companies, Petroleo Brasileiro SA and Petroleras de Venezuela, are known.

Chavez said oil companies of other South American countries, such as Mexico and Columbia, could later join the strategic alliance.

The Venezuelan leader also advocated increased integration between South America and the Caribbean, even if "political will must prevail over economics."