Monday 16th

Stringent security in Energy Summit
The first delegations participating in the South American Energy Summit arrived Sunday in the Island of Margarita, eastern Venezuela.

The delegations of Argentine and Uruguay -headed by Vice-President Rodolfo Nin Novoa- arrived in Hilton Hotel on Sunday amid stringent security measures. The Presidential Guard and other state security corps prevented free passage even to reporters for coverage of the event.

Lula to deal with anti-ethanol criticisms in Energy Summit
Brazilian President Luiz Inácio Lula da Silva said Monday, before departing for Venezuela to attend the First Latin American Energy Summit, that he hoped to address, together with his counterparts in the region, the "technical or scientific" grounds for the recent criticism against ethanol.
 
"I still do not know what are the technical or scientific rationale behind these criticisms. I hope we have the chance to discuss this issue" during the summit.

Chávez and Cuban ruler Fidel Castro last month slashed out at plans to expand world production of ethanol -an alcohol used as fuel manufactured from sugar cane or corn. Chávez and Castro argued that such a plan could endanger food production worldwide.

Summit starts; energy ministers meet
South American ministers of energy are to bolster Monday energy integration during an ongoing meeting in the Venezuelan island of Margarita, at the start of the First South American Energy Summit attended by 12 heads of state.

The Second Meeting of Energy Ministers of the South American Community of Nations is to discuss strategies to consolidate energy union, as the hemisphere contains both producers and consumers, Efe reported.

Venezuelan Minister of Energy Rafael Ramírez said in advance that the items in the agenda include large projects "underway," such as the Southern Great Pipeline, aimed at carrying gas from Venezuela to Argentina. The first ministerial meeting was held last September in Caracas.

Correa, Kirchner join energy summit
The first South American energy summit started Monday with a meeting of the energy ministers looking for hemispheric union labelled by Ecuadorian President Rafael Correa as "unavoidable."

"It is time to find a common present and future. Go ahead, Venezuela. Go ahead, South America. Go ahead, Latin America," said Correa, the first head of state arriving in the summit, where a dozen of rulers is expected.

Tuesday 17th

Petrobras in major offshore gas project in Venezuela
Marco Aurelio García, aide of Brazilian President Luiz Inácio Lula da Silva, confirmed that Brazilian state oil firm Petrobras will have a stake in offshore gas project Mariscal Sucre.

García emphasized that Brazil wants to participate in the whole process to create the intended Bank of the South, rather than joining once the institution policies have been outlined.

He confirmed that ethanol was at the center of controversies during the first day of the South American Energy Summit taking place in the Venezuelan Island of Margarita.

South American Energy Summit reaches generic consensus on biofuels
South American Presidents early on Tuesday reached a generic consensus on biofuels, an issue that kept the region divided because of the diverging stances of Venezuela and Brazil, official sources said.

"This is a complex discussion, a political debate," Venezuelan Minister of Energy and Petroleum Rafael Ramírez told Efe in a brief statement.

The consensus reached "will be announced by presidents," Ramírez added shortly before the beginning of the first meeting of presidents attending the South American Energy Summit in the Island of Margarita, eastern Venezuela.

Chávez: Venezuela is not opposed to ethanol
President Hugo Chávez said during the opening speech at the First South American Energy Summit -aimed at assessing energy resources in the region- that "energy sources need to be diversified."

Chávez outlined the status of energy resources in Latin America, as compared to the rest of the world. He suggested diversification of energy sources and made a proposal he called South American Energy Agreement which, according to the Venezuelan ruler, would serve for the region "to be certain that during this century none of our countries is to face an energy crisis."

Brazil criticizes South American gas OPEC
The Brazilian government criticized Tuesday the creation of a gas-based Organization of Petroleum Exporting Countries (OPEC) by Argentina, Venezuela and Bolivia.

The initiative has been discussed at the First South American Energy Summit.

"In an effort at integration, we should attune producers and consumers' interests. There is no room in a meeting like this for defense of a gas OPEC. If they do it, that is their business," answered Brazilian Minister of Foreign Affairs Celso Amorim to a question asked by AFP.

CAN notes Unasur political role
The brand-new Union of South American Nations (Unasur) will be a decision-making organization responsible for coordinating actions with regional economic and trade agencies, said Tuesday Ecuadorian Freddy Ehlers, the secretary-general of the Andean Community of Nations (CAN).
 
During an interview with Efe, the high-ranking official voiced satisfaction because the heads of states met in the First South American Energy Summit fulfilled the "essential" purpose of creating the Union of South American Nations. In addition, they agreed on a "small, functional" Permanent Secretariat.

Presidents endorse the creation of South American Energy Council
The First South American Energy Summit agreed on the organization of a South American Energy Council to follow up hemispheric energy-related agreements, reported Tuesday Venezuelan President Hugo Chávez and his Colombian counterpart Álvaro Uribe.

"It has been a perfect summit. All of them were very happy as they left. The creation of a South American Energy Council was approved," Chávez told reporters after the plenary meeting in Margarita Island.

"The ministerial council has been created to manage everything related to South American deals on energy matters," said previously Uribe, as quoted by Efe.

Wednesday 18th

Uruguay offers to pay oil with debt bonds
Venezuelan state oil conglomerate Pdvsa is willing to receive Uruguayan Treasury bonds as part of payment for the oil it supplies to Uruguay.

Uruguayan state oil firm Ancap CEO Daniel Martínez, in Venezuela attending the First South American Energy Summit, said following a meeting with his Pdvsa counterpart Rafael Ramírez that the Venezuelan holding "found the idea interesting and believe it is a good idea," Efe reported.

In order to avoid long-term indebtedness, Ancap proposed paying 25 percent of the Venezuelan oil bill "with state bonds," Martínez explained.

Uribe proposes bilateral trade agreement
Colombian President Álvaro Uribe does not rule out Venezuelan return to the Andean Community of Nations (CAN), and told so his Venezuelan counterpart Hugo Chávez during a bilateral meeting early on April 17, during the First South American Energy Summit, but also proposed "quickly undertaking a bilateral trade agreement that governs future bilateral relations."

"I think that given bilateral trade volume and our countries' dependence on each other this agreement is very necessary, and it does not run counter to Venezuelan return to CAN."

Three candidates to Unasur Secretariat
Brazilian presidential aide and former Minister of Foreign Affairs Marco Aurelio García and Samuel Piñeiro, respectively, and former Ecuadorian President Rodrigo Borja are so far the candidates to occupy the seat of the Permanent Secretariat of newly created Union of South American Nations (Unasur), said Venezuelan President Hugo Chávez during the First South American Energy Summit.

In a document called Political Dialogue among the Heads of State and Government, the countries attending the summit undertook to replace the South American Community of Nations with Unasur, which will be based in Quito, Ecuador.