Venezuela and Brazil late Friday signed an energy accord to share technical expertise and explore possible joint ventures and investment between the two South American neighbours, officials said.
Under the co-operation agreement, the oil ministries of the two countries will form a commission to meet every six months to study proposals and deals between Venezuelan state oil firm PDVSA and Brazil's Petrobras and others.
"The intention is to create joint policies. Brazil has Petrobras and Venezuela has PDVSA, companies which can be used in a joint manner in areas such as heavy crude, for example, and sharing technology," Brazilian Energy Minister Dilma Rousseff said in a statement.
No details were given on any possible future projects. The deal was signed at a meeting of Latin American and Caribbean oil ministers on Venezuela's Margarita Island.
Venezuela's President Hugo Chavez, a tough-talking nationalist who has vowed to fight poverty, has made regional integration one of the political banners of his rule in the world's No 5 oil exporter.
Left-winger Chavez sees Brazil's President Luiz Inacio Lula da Silva as a political ally in regional development against what he criticises as US meddling in Latin America. Critics say Chavez is a tyrant bent on copying Cuba-style communism.
Venezuela is pushing for energy and economic integration between Latin American countries as an alternative to the US-backed regional free trade initiatives. Chavez has already signed several energy accords, including a recent deal with Argentina for increased oil and fuel co-operation.
Representatives from Brazil, Venezuela, Argentina and Bolivia on Friday also signed an agreement to work toward the Petrosur initiative to integrate energy resources of Venezuela and southern cone nations.