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Brazil, Venezuela sign $13.5 bln refinery deal
MOSCOW, October 31, 2009 (RIA Novosti) – Brazil and Venezuela have signed a long-delayed deal on a joint venture to build and run an oil refinery in Brazil, Venezuela’s Universal newspaper said on Saturday.
State-run Petroleo Brasileiro SA will hold a 60% stake in the firm and Petroleos de Venezuela will have the other 40% under a deal the two companied signed on Friday after four years of negotiations.
Brazil has already started the construction of the Abreu e Lima refinery estimated at $13.5 billion in northeastern Pernambuco state. The facility is expected to process 200,000 barrels of crude a day.
The agreement came during Brazilian President Luiz Inacio Lula da Silva’s visit to Venezuela.
The Latin American leaders signed a host of other agreements on Friday, including on joint development of oil fields in Venezuela’s Zulia state, cooperation in electronic equipment production, healthcare and sport, the paper said.
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It lookis like the Venezuelans finally got onboard the $13.5B Brazil Northern Grass Roots Refinery project( since it was going ahead without them) & the JV split is 60% Brazil. It calls for JV development of Venezuelan Zuila oil field which was undeveloped eastern side of Maricibo basin – which was found and developed by consortium led by JV partners Chevron/Total/ConocoPhillips whose ownership was later raped in PDVSA’s privitatization of Oil assets.
Brazil should be keeping in mind the end result of past PDVSA JV investments. <Also as side fact – Zuila area accounted for 29 of 179 Venezuelan kidnappings in 2007>.
Both the Brazil Refinery & PDVSA Zuila Upgrader are expected to have coking units.
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