MercoPress. South Atlantic News Agency

Petrobras- Venezuelan joint venture

Brazil's state-run oil company has signed a joint venture agreement that brings oil pumping operations under Venezuelan government control, officials said yesterday.

The decision by Petroleo Brasileiro SA, or Petrobras, follows similar moves by Royal Dutch Shell PLC and Chevron Corp. in recent days to submit to government demands for a greater share of control and revenues from oil operations in Venezuela.

Petrobras has signed the first of four new contracts that replace agreements to independently pump oil at fields across the country, state oil company Petroleos de Venezuela, or PDVSA, said in a statement.

Under the new terms, PDVSA holds a 60 percent stake in the La Concepcion oil field in western Venezuela, while Petrobras has a 36 percent stake. Williams International, a smaller oil company, holds the remaining 4 percent.

PDVSA said Petrobras soon will sign similar contracts for its three other fields: Mata, Acema and Oritupano-Leona, all in eastern Venezuela.