May 5, 2005
PDVSA may sell US assets to Petrobras to get foothold in Brazil

(AFX Press) - "Venezuela's state-run oil company Petróleos de Venezuela (PDVSA) could sell some of its US assets to Petroleo Brasileiro SA in exchange for getting a foothold in Brazil, daily Gazeta Mercantil reported.

Gazeta quoted a source close to PDVSA as saying that if Petrobras agreed to process only venezuelan oil in a new refinery in the north east of Brazil, PDVSA would make sure that Petrobras take over 1,700 petrol stations run by its Citgo unit as well as Lyondell's stake in a Texas-based heavy oil refinery. Lyondell has said it is ready to consider asset sales to reduce its debt. PDVSA owns 49 pct of the refinery".