This excerpt taken from the PBR 6-K filed Dec 14, 2007.
Petrobras and PDVSA to incorporate mixed corporation in Brazil
(Rio de Janeiro, December 14, 2007). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that Petrobras and PDVSA have decided to incorporate a corporation in Brazil aiming at building and operating the Abreu e Lima Refinery, in the state of Pernambuco, Northeastern Brazil. Interest in the company will be shared at the rate of 60% Petrobras and 40% PDVSA, and staff from both companies will operate the plant. The refinery will be capable of processing 200,000 barrels of oil per day, and a supply agreement for 100,000 barrels of oil per day will be set by the two companies, coming from the Carabobo 1 block, in the Orinoco oil range, will be signed to provision it.
PDVSA announced the development of the fields identified in the Carabobo 1 block is underway, keeping the participation option open for PETROBRAS in the oil production projects, until PETROBRAS concludes its pertinent technical and economic studies. As the result of the joint work carried out by Petrobras and PDVSA, it was possible to have 45.5 billion barrels of oil certified in situ in the Carabobo 1 block.