Nelson Motta
Reporter - Agência Brasil

Caracas (Venezuela) - Petrobrás (Brazilian Petroleum S.A.) and PDVSA (Venezuelan Petroleum S.A.) will sign a protocol of intentions today (14) for the construction of an oil refinery in Brazil. US$ 2 billion will be invested, and daily production is expected to run between 150 thousand and 200 thousand barrels. The protocol will being signed by the presidents of Petrobrás, José Eduardo Dutra, and PDVSA, Rafael Ramirez, during President Lula's work visit to Venezuela.

According to Dutra, the locale where the refinery will be built in Brazil has not yet been determined. "Possibly in the Northeast," he informed.

Petrobrás will also signed four agreements covering petroleum exploration and production in Venezuela. The company's international director, Nestor Cerveró, believes that the agreements will enable the Brazilian firm to expand its exploration activities in Venezuela, which has the largest reserves of petroleum in Latin America and the third largest in the world.

"Working in conjunction with one of the world's largest petroleum companies will allow us to consolidate our activities in South America, in partnership with PDVSA, which has a huge oil and gas potential in Venezuela," Cerveró explained.

Translation: David Silberstein