Venezuela: No conflict over Brazil refinery

CARACAS, Venezuela - Oil Minister Rafael Ramirez said Thursday there's been no conflict with Brazil regarding a refinery project worth $4.1 billion — despite earlier comments from a Brazilian oil executive.

Ramirez called the comments "the opinion of a low-level official," and said that Venezuela has not been notified of any changes to the project, a favorite of President of Hugo Chavez.

Venezuela plans to invest 40 percent in the cost of building the refinery in the northeastern Brazilian state of Pernambuco. It is expected to start processing 200,000 barrels of oil a day — half from Venezuela and the rest from Brazil — by 2010.

But an executive from Brazil's Petroleo Brasileiro SA, or Petrobras, said Wednesday the country was prepared to build the refinery without Venezuela's financing or oil supplies.

Downstream director Paulo Roberto Costa said the two countries have disagreed on the price of heavy Venezuelan crude that would supply the refinery.

Venezuela "has no problem with Petrobras," Ramirez said.

He also said that refineries Venezuela is planning to help build in Ecuador and Nicaragua are on schedule — even as falling oil prices shrink revenues at state oil company Petroleos de Venezuela, SA, or PDVSA.

In November, PDVSA vice president Elogio Del Pino told the Venezuelan newspaper El Nacional that Venezuela was reevaluating how to pay for the refineries, which together could cost $7.5 billion.

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