Following the Mercosur meeting in Brasilia, Argentine President Cristina Fernández de Kirchner and Venezuelan President, Hugo Chávez, signed a cooperation agreement to develop a strategic energy plan between state oil companies YPF and PDVSA.
The meeting took place on Tuesday at the Argentine embassy in the Brazilian capital. After signing the accord, Cristina Fernández stated that Mercosur “should aspire to become the fifth global economy behind the US, China, Germany and Japan.”
The agreement ratifies a decision to identify opportunities and coordinate strategic participation for planning in the distribution of hydrocarbons, both in Venezuela and in Argentina.
In addition, projects already implemented will be optimised for both parties and new ones will be launched.
For this purpose, according to the text of the agreement “an Energy Cooperation Strategic Plan will be nominated so that closer links can target the companies to increase crude production in both countries”.
As part of the union, YPF will be incorporated to the Ayacucho Areas 6 of the Orinocco shale deposits currently in production while PDVSA will join “oil and gas exploitation projects” in Argentina.
The two companies are expected to come up with a portfolio of projects in the form of a proposal with the objective of collecting funds for short, medium, and long-term execution of the different initiatives.
PDVSA will participate in petrochemical and technology transfer projects or in any other form of cooperation to which both sides agree. The administration and procedures of different projects will be the responsibility of Venezuela’s Oil and Mines ministry and the Argentine Federal Planning Ministry.
The agreement solidifies the close friendship and cooperation links between the two countries.