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By Upstream staff 

Argentina, Brazil and Venezuela have agreed to form a joint "Petrosul" initiative to integrate energy resources, Venezuelan President Hugo Chavez has said.

Chavez, who is pushing for energy and economic integration among Latin American countries as an alternative to US-backed regional free trade initiatives, said the three countries agreed "to give shape to Petrosul" and chose a project in each of the countries for joint work.

Chavez spoke to reporters after a dinner with Brazilian President Luiz Inacio Lula da Silva and Argentine leader Nestor Kirchner before the South American-Arab summit that started on Tuesday.

The projects include oil and gas development in Argentina, the construction of a refinery in northern Brazil able to process heavy Venezuelan crude and oil exploration in the Orinoco basin in Venezuela.

Chavez said energy and foreign ministers of the three countries would meet on Tuesday to detail these proposals.

Brazilian Energy Ministry officials contacted on Tuesday could not confirm or deny the actual creation of Petrosul, Reuters said.


Tuesday, 10 May, 2005, 14:14 GMT  | last updated: Tuesday, 10 May, 2005, 20:17 GMT

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