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Pdvsa, Petrobras to form binational company.
Petroleos de Venezuela SA and Petroleos Brasileiro SA have signed a letter of intent covering the joint development of downstream and upstream energy projects in Venezuela and Brazil.
The accord, signed by Pdvsa Vice-Pres. Hector Ciavaldini and Petrobras Pres. Henri Philippe Reichstul, would lead to the creation of a binational company called Petroamerica. The plan's biggest proponent, Venezuelan President Hugo Chavez, sees this as another step toward full energy integration across Latin America. Currently, energy integration is a key focus of the Mercosur trading pact involving the so-called Southern Cone nations of South America, including Brazil.
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