Brasília - State-run petroleum companies in Venezuela, PDVSA, and Argentina, Repsol YPF, have signed an agreement for exploration, production and commercialization. Under the terms of the agreement, PDVSA acquires 10% of Argentina's gross oil production.

Earlier, during the First South American Community of Nations summit, PDVSA and Petrobras signed an agreement for the construction of a refinery in Brazil.

Hugo Chavez, the president of Venezuela, declared that the two agreements were clear signs that South American integration was becoming reality. "We stand on the edge of a grave worldwide petroleum crisis. But Latin America has large oil reserves. We cannot permit this crisis to hurt Latin America, not with the reserves we have," said Chavez.

The Venezuela-Argentina agreement calls for Argentina to produce petroleum that will be exported to Venezuela. Meanwhile, the two countries will set up two partnership ventures in oil rich areas of Venezuela.

Translator: Allen Bennett