February 22, 2007
Venezuela and Argentina seal energy alliance

(PDVSA Press Room) - "The president of Venezuela, Hugo Chávez assured that 'the Orinoco Oil Belt has enough oil to share under conditions of equality and justice, motivated by solidarity, with Latin America and the Caribbean. The Orinoco oil Belt belongs to the nations of Our America'. He said it during the inaugurating act for the perforation activities at the Ayacucho 6 Block of the Orinoco Oil Belt, which seals the energy alliance between Venezuela and the Republic of Argentina.

The Venezuelan president pointed out that 'we are sharing oil in order to strengthen the Bolivarian spirit of cooperation' which is supported by the mutual aid between the two countries in various matters of shared interest.

On the other hand, the Argentine Head of State, Néstor Kirchner, ratified the need for integration, particularly with regards to 'oil, iron and steel industry, and agricultural and stockbreeding cooperation. It is fundamentally important to promote mutual aid in the health field, and technological transference, and not to try to gain markets among us, but instead to generate solidarity markets that will allow us to grow together, in this particular case, in a bilateral way'.

Within the frame of the act for the ignition of the drill at the Ayacucho 6 Block of the Orico Oil Belt, five Memorandums of Understanding were subscribed in matters of energy, including the electricity and hydrocarbons sectors.

In this regard, the Minister of People's Power for Energy and Petroleum and president of PDVSA, Rafael Ramírez, and the Minister of Federal Planning, Public Investment and Services of Argentina, Julio de Vido, signed several Memorandums of Understanding in matters of electrical equipment, natural gas and acquisition of busses with gas engines.

In this respect, the Commerce and Supply Executive Director of PDVSA, Asdrúbal Chávez subscribed a Fuel Oil supply contract with the Mixed Enterprise ENARSA - PDVSA; a Memorandum of Understanding for Natural Gas for Vehicles Associated Equipment between Petróleos de Venezuela and the Argentine Chamber of Compressed Natural Gas in order to begin the corresponding studies to transfer these technologies through the constitution of mixed enterprises destined to fabricate equipment for the creation of an industrial park of natural gas for vehicles in Venezuela; and a Memorandum of Understanding for Buses with Natural Gas Engines between Petróleos de Venezuela S.A. and Tecnología Avanzada de Transporte S.A. (TATSA), with the aim of developing the natural gas for vehicles program of Venezuela, as well as the transference of such technology.

Additionally, a Memorandum of Understanding was signed in matters of Gas Engines between PDVSA and Tomasetto Achile, through which the corresponding studies will be given a start, along with the negotiations for the required terms and conditions for the transference of technology through constituting Mixed Enterprises for the fabrication of engines in Venezuela.

Likewise, both governments subscribed Memorandums of Understanding in the areas of agriculture and stockbreeding, health, medicines, communications and information, and diplomacy and housing cooperation; and the Memorandum of Understanding between the Bolivarian Republic of Venezuela and the Republic of Argentina for the Constitution of the Banco del Sur, which shall be created in the following 120 days.

In this manner, the Governments of Argentina and Venezuela ratify their integrationist commitment on the basis of solidarity and complementation between the countries of Latin America and the Caribbean".