MercoPress. South Atlantic News Agency
Brazil’s two largest companies team up to work together in several projects
CEO Murilo Ferreira and CEO Foster, top muscles of the business community Petrobras and mining company Vale, the two biggest companies in Brazil, have signed a memorandum of understanding to pursue joint ventures in various areas, Petrobras said.
The companies will work together on potassium production, nitrogen fertilizer, thermoelectric, petroleum derivatives, gas, biodiesel and logistics projects, Petrobras said.
“The goal of the protocol is to study the technical-economic viability of projects of common interest in the Petrobras-Vale system; establish the negotiable items for the different projects and study legal solutions for structuring projects of common interest,” Petrobras said in a statement.
On completion of the study phase, the companies will “weigh” the preparation of a business plan with a “compatible” timeline of activities, the company said.
The memorandum of understanding was signed by Petrobras CEO Maria das Graças Foster and Vale chief Murilo Ferreira after a meeting on Friday in Rio de Janeiro, the statement said.
Among the joint projects under consideration is one involving potassium production by Vale at a Petrobras field in the north-eastern state of Sergipe.
Top Comments
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Read all commentsThis is a particularly subtle and sensitive way of encouraging (private) Vale to work with the Brasilian government through the ('public') Petrobras.
Apr 20th, 2012 - 07:58 am 0It has been a 'carrot and stick' process, but it should succeed really rather well - as long as the commercial imperative remains at the forefront of the political mind.
Certainly, the vulnerable position of Petrobras in Argentina wrt nationalisation should help the Brasilian government to keep its focus.
Both these companies remain international giants, at the same time as aiding the Brasilian economy.
The partnership's plans and performances will be VERY closely monitored around the world.
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