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."