Venezuela and Brazil have been talking energy, money and trade. The two countries have agreed to jointly run a new oil refinery in Venezuela’s Orinoco Strip. Brazil’s state run oil company Petrobras will own 40 per cent, and Venezuela’s PDVSA 60 per cent.
On a trip to Brazil, President Hugo Chavez also announced the creation of a South American Bank along with Argentina, Bolivia and Ecuador from next November.
Chavez said: “This will give us the body, nerve and skeleton for southern integration, for the union of South America, not only between Venezuela and Brazil.” He also urged Brazil to approve Venezuela’s entry into Mercosur, the South American Trade bloc.
Brazil’s President Lula da Silva said: “We are aware that this strategic partnership can help MERCOSUR, and in the integration of South American countries.” Chavez criticised Brazil for dragging its feet over a 14-billion euro pipeline from Venezuela, which would supply much of the continent with gas.