May 11, 2005
Joint ministerial agreement defines initial bases and projects of Petrosur

(PDVSA's Press Release) - "Brazil, Argentina and Venezuela, determined to continue struggling for the energy integration and convinced of the strategic value of this initiative in favor of sustainable development for the region, have agreed on the base document for the incorporation of Petrosur as a coordinator instance of energy policies and, in the same way, on the three projects that will begin shortly.

The joint agreement, defining the platform of principles, organization, and gobernabilty that will rule PETROSUR, was signed by Dilma Rouseff, Minister of Mines and Energy of the Federative Republic of Brazil, Julio De Vido, Minister of Federal Investment, Services and Works of the Republic of Argentina and Rafael D. Ramírez Carreño, Minister of Energy and Petroleum of the Bolivarian Republic of Venezuela and President of Petróleos de Venezuela.

'Within the framework of the conversations, it was decided to develop three projects with the participation of Brazil, Venezuela and Argentina in the concept of Petrosur: One, in the Orinoco Oil Belt, another in the Abreu de Lima Refinery, to the northeast of Brazil, and the last one will be developed in the fields of oil and gas exploitation and production in the Republic of Argentina'. Venezuelan Minister, Rafael D. Ramírez Carreño, informed.

'These achievements are the result of an intense work of exchanging ideas. It has been a great and very dynamic meeting, in which the three ministers signed the document and now we are submitting it to the consideration of our presidents', Ramírez said.

In addition and regarding the meeting held between the three ministers in Caracas in April 2005, the Venezuelan Minister and President of PDVSA said that they checked the advances of the bilateral projects between Brazil and Venezuela and also between Argentina and Venezuela. 'In this sense, we are going to resume the fuel oil supply to Argentina and we will continue with the projects that are being assessed with Brazil and that have to do with biodiesel, ethanol obtained from sugar cane and the rest of the projects that have been agreed in the memorandums of understanding signed in February 2005'.

These important steps for the creation of Petrosur were given within the framework of the ' Summit of South American and Arab Countries ', which brought the Venezuelan President, Hugo Chávez, to Brazil. This summit is the first international encounter, in the recent years, that looks for the approximation of two regions of the developing world and that includes a South-South bi-regional integration proposal.

PETROSUR is a politic and commercial company promoted by the Bolívarian Republic of Venezuela, with the support of other governments of the region. Petrosur is directed to establish cooperation and integration mechanisms under the basis of complementarity and it is called to use, fairly and democratically, the energy resources for the socio-economic improvement of the region.

This initiative recognizes the importance of fostering cooperation and strategic alliances between the state oil companies of Brazil, Argentina and Venezuela, Petróleos Brasileros S.A. (PETROBRAS); Energía Argentina S.A. (ENARSA) y Petróleos de Venezuela S. A. (PDVSA), to develop businesses in the whole hydrocarbons chain, taking into account the exhaustible nature of hydrocarbons, respecting the countries' sovereignty and considering the different features, potentials and necessities of the member countries.

One of the Petrosur's objectives will be to minimize the negative effects, for the countries of the region, of the energy costs caused by speculative and geopolitical factors, through the diminution of the transaction costs (eliminating brokers), the access to preferential financing and the use of commercial synergies to solve the economic and social asymmetries of the region.

Among the fields of cooperation, it stands out the following: Supply and commercialization of crude and products; exploration, exploitation and processing of oil and gas; design; construction and joint operation of refineries; storage facilities and terminals; transportation and logistic; technology; training and public policies.

The fair distribution of the energy resources to the social sector will be accomplished through social programs, as educative and health care missions, and plans to reduce unemployment, among others.

Petrosur also sets out to strengthen other regional initiatives as Mercosur, Andean Community of Nations, Bolívarian Alternative for Latin America and the Caribbean (ALBA) and South American Community of Nations.

The road to Petroamerica moves forward based in the necessity of fostering the highest valuation of the nonrenewable natural resources and also in the importance of stressing that controlling the access conditions and managing these resources are inalienable rights of the countries".