Petrobras and PdVSA sign 15 energy MoUs
Brazil's federal energy company Petrobras and Venezuela's state oil company PdVSA have signed 15 Memorandums of
Understanding (MoUs) to develop joint exploration and production, refining, petrochemicals and transport projects in
Brazil, Venezuela and elsewhere, the companies announced during a business summit in Caracas.
The MoUs include the construction of a $ 2 bn refinery in north-eastern Brazil, joint natural gas exploration in
Venezuela, oil production on mature fields, a crude upgrader project in the Orinoco belt, technological exchange in
ethanol and biofuel production, crude transport, feasibility studies for a fertilizer plant, ship and port building,
and the construction of a $ 20 mm lubricants plant in Cuba, Venezuela's communications ministry said.
The mines and energy ministries of both countries have formed a commission to study joint business opportunities. The
refinery will be in the north-eastern state of Pernambuco at the port of Suape, the Pernambuco state government
said.Pernambuco state authorities and local investment group Renor have contacted PdVSA and Petrobras about the
project and the state government has offered tax breaks.
PdVSA and Petrobras have agreed to conclude economic feasibility studies for the refinery expected to have processing
capacity of 150,000-200,000 bpd of oil.
Brazil has been speeding up the construction of new refineries to meet growing demand for fuel and process the
locally produced heavy crude, thus reducing the country's dependence on imports of lighter crude.
Petrobras controls over 95 % of the refineries in the country and owns 11 refineries with the capacity to process of
1.97 mm bpd. It also owns two refineries in Argentina and two in Bolivia with combined capacity of 128,000 bpd.
