Brazil To Finance Shipyard for Venezuela’s State Oil Company

CARACAS -(Dow Jones)- Brazil’s national development bank, or BNDES, agreed Monday to provide Venezuela’s state oil company with $637 million in financing for the construction of an oil tanker shipyard, according to Venezuelan state media.

Brazilian construction group Andrade Gutierrez will join Petroleos de Venezuela SA in building the facility, which will be located on the Araya Peninsula of Venezuela’s Sucre state. The shipyard will produce tankers for the delivery of Venezuelan oil to the Asian market.

The agreement was one of several announced Monday during a visit by Venezuelan President Hugo Chavez to Brazil. Chavez and Brazilian counterpart Dilma Rousseff had their first official meeting since Rousseff took office in January.

-By Ezequiel Minaya, Dow Jones Newswires