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Venezuela and Brazil reconfirm various oil projects

Petroleumworld
Ciudad Guayana
Petroleumworld.com 14 11 06

Venezuelan President Hugo Chavez, and Brazilian President Luis Ignacio Lula da Silva, Monday, reaffirmed the plans for the 200,000 b/d joint refinery, the countries' state oil companies plan to build in Pernanbuco, northeast Brazil, the Brazilian participation in Venezuela's Mariscal Sucre offshore gas & oil exploration project, the joint ventures in the exploitation of Venezuelan mature oil fields, and the participation in the development of the Orinoco extra heavy oil Faja.

Chavez and Lula got together on Monday in Ciudad Guayana, southern Venezuela, to inaugurate the second bridge over Venezuela's southern Orinoco River constructed by a Brazilian company and overseeing work by the countries' state oil companies exploring Venezuela's Orinoco Faja basing reserves.

The main points of discussion between the two presidents was the Pernanbuco 200 000 barrels per day refinery project, and the participation of Brazilian oil company Petrobras and the Venezuelan oil compnay PDVSA in the development of the extra heavy oil basin Orinoco Faja, in which PDVSA and Petrobras are working together to certify the amount of oil a Orinoco Faja's blocks, assigned for certification to Petrobras.

The refinery will need an investment of USD 2.8 billion instead of USD 2.5 billion, as established in the initial plans and would process a mix of Brazilian Marlin and Venezuelan Orinoco Faja heavy crude and be operational by 2012, the Brazilian state company reported.

Petrobras CEO José Sergio Gabrielli accompanied Brazilian President Luiz Inácio Lula da Silva in a visit Monday to Venezuela, also the governor of Brazil's Pernambuco State, the site of the future refinery, was also attending the meetings.

Petrobras has stakes in four oil fields and three natural gas fields in Venezuela.

Petroleumworld 13 11 06

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