February 7, 2005
Argentina and Venezuela signed eight commercial cooperation agreements

(Oxford Analytica) - " SIGNIFICANCE: Chávez and Argentine President Néstor Kirchner signed eight commercial cooperation agreements and reaffirmed their commitment to regional integration. However, the visit provoked strong criticism from the opposition, usually more muted in its attitude towards Kirchner, and raised questions over future regional alliances.

ANALYSIS: On February 1, Venezuelan President Hugo Chávez made his fourth visit to Argentina since President Néstor Kirchner took office in May 2003. The two leaders (...) have met ten times in less than two years and have seemingly formed a warm relationship. Kirchner strongly supported Chávez in the August recall referendum, while Chávez has proposed to help Argentina overcome the energy shortages which began last year.

The brief visit led to the signing of a series of agreements, some of them potentially controversial:

  • Chávez and Kirchner jointly inaugurated the first two service stations to be operated jointly by Venezuelan state oil company PDVSA and its newly created Argentine counterpart, ENARSA. The move was described as the first stage in an alliance which will operate 600 service stations and other downstream operations in Argentina (rumoured to involve the purchase of some of Shell's downstream assets, which Shell has now denied). Chávez claims that the operations may also involve Brazilian state oil company Petrobras, representing a first phase in the creation of the proposed regional oil giant Petrosur.
  • PDVSA will also provide technological assistance to allow Argentina to increase daily oil output from 700,000 to 1 million barrels per day, as well as constructing four Panamax tankers at the Rio Santiago shipyards in Buenos Aires province.
  • Venezuela will continue to supply fuel oil for refineries and diesel, exporting 8 million barrels of fuel oil and 1 million barrels of diesel to Argentina this year. In exchange, Argentina will export dairy cattle, beef and hospital equipment to Venezuela, as well as pharmaceuticals and medical personnel.
  • Argentina became the first country to agree to broadcasts by the regional news channel, Telesur, which Chávez hopes to create to compete with international news services such as CNN. Argentina will acquire a 20% share in the company and will provide personnel and 100 hours of content per month for the channel, which is to broadcast news and cultural programme and 'promote Latin American values' (...)".