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Petrobras cancels partnership with PdVSA on new north Brazil refinery

By JEFF FICK

RIO DE JANEIRO -- Brazilian state-run oil company Petroleo Brasileiro, or Petrobras, has decided to end a joint-venture to build a refinery with Venezuela's Petroleos de Venezuela, or PdVSA, the Valor Economico newspaper reported Tuesday.

Petrobras will incorporate the Abreu e Lima refinery currently under construction in northern Brazil's Pernambuco state and close the joint-venture company created with PdVSA on Nov. 1, Valor said.

Petrobras has been building the refinery on its own after PdVSA repeatedly missed deadlines to provide cash and loan guarantees to cover the Venezuelan firm's portion of the $20 billion project.

Petrobras didn't immediately respond to requests for comment.


Dow Jones Newswires

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