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.
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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