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Venezuelan state oil company PDVSA has sold a fuel oil cargo of 270,000 metric tonnes to Petroleo Brasileiro (Petrobras) S.A., according to market sources.

Traders said that the 380cst cargo of 4% sulphur fuel oil was probably sold at a discount of approximately $14 to Singapore spot prices on a freight-on-board(FOB) basis. The cargo is expected to be shipped to Asia, where it is likely to be used in the marine fuels market and could potentially be used as a blending material.

Both Latin American companies are also collaborating in other areas. In March 2008, Petrobras and PDVSA announced a joint shareholding agreement for the Abreu e Lima Refinery in Northeastern Brazil. The plant is expected to go online in the second half of 2010 and to reach a processing capacity of 200,000 barrels of oil per day by 2011. Approximately US$4.05 billion will be invested in the project.

Petrobras is also considering taking up to a 40 percent stake in Venezuela's oil exploration and production project in the Carabobo 1 field. The Brazilian energy giant had originally considered taking a stake of no more than 10 percent but President Luiz Inacio Lula da Silva recently appeared to insist on a larger participation by Petrobras after a meeting between Brazilian and Venezuelan leaders in March.