Petrobras, PDVSA Plan $4.7 Bln of Joint Ventures (Update1)

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Sept. 29 (Bloomberg) -- Brazil and Venezuela's state oil companies will spend more than $4.7 billion on oil, natural gas and refining ventures as they strengthen ties within the Latin American region to promote economic independence from the U.S.

The projects include a $2.5 billion oil refinery in Pernambuco, a state in Brazil's northeast, and a $2.2 billion offshore gas field in Venezuela, according to an E-mailed statement from Rio de Janeiro-based Petroleo Brasileiro SA, Brazil's state-controlled oil company. Petrobras, as the company is known, and Petroleos de Venezuela, that country's state producer, also agreed to look for oil in Venezuela's east.

``This accord is very good for both companies,'' said Juan Carlos Sosa, president of Grupo Petroleo YV, a Caracas oil consultant. ``Petroleos de Venezuela is bringing the reserves and Petrobras the know-how.''

Brazilian president Luiz Inacio Lula da Silva, 59, and Venezuelan president Hugo Chavez, 51, won election with promises to strengthen local economies and reduce the influence of the U.S. Both have said they would expand road, rail, energy, trade and security links between the nations of Latin America.

Bloomberg