Brasília - At the opening ceremony of the First South American Community of Nations summit, Brazil and Venezuela have announced that their state-run petroleum enterprises will join forces to build a refinery, along with the oil tankers to transport the oil they refine. President Luiz Inácio Lula da Silva declared that it was political willpower that had made it possible for Brazil and Venezuela to join their state-run petroleum enterprises, Petrobras and PDVSA, in such a large joint effort..

Lula went on to say that it was an example of South American integration that would make national heroes, Tiradentes and Bolivar, proud. "It took a while. Around 200 years. It should have happened long ago. But we are making progress on integration," said the president, adding that integration had to be political, cultural and commercial. "We must integrate our infrastructure because without communications, energy, ports, railroads, waterways, highways and airports, there can be no integration. We have to practice what we preach. Make integration a fact!"

The refinery, to be built in Pernambuco at Porto de Suape, will cost US$2.5 billion and will have a 200,000 barrels/day capacity. It will be called the Abreu Lima refinery, after a general from Pernambuco who fought for Latin American independence.

Translator: Allen Bennett