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China, Venezuela sign agreement for oil and gas projects

05th August 2013

The Venezuela-China Cooperation Agreement allows for projects with China in the Orinoco Oil Belt to go ahead, the PDVSA confirm

The agreement also expands "the scope of (China/Venezuela's) oil and gas trade, and ensuring full compliance with ongoing long-term contracts."

The Venezuelan government officially made effective an agreement which will allow the cooperation with China on oil production projects.


The Venezuela-China Cooperation Agreement on Hydrocarbons, Petrochemicals and Mining became effective upon publication in the Gaceta Oficial, the Venezuelan government’s official newspaper, according to state-run oil holding, Petróleos de Venezuela (PDVSA)

The agreement, which is valid for 10 years, provides for joint participation in oil prospecting and production, and joint projects in the Orinoco Oil Belt which, according to the PDVSA cover “all elements of the oil and gas value chain”.


The agreement also expands "the scope of oil and gas trade, and ensuring full compliance with ongoing long-term contracts," the PDVSA added, as well as cooperation in liquefied petroleum gas, mining and petrochemicals.


Rafael Ramirez, president of the PDVSA and also the country’s minister of petroleum said over the weekend that these oil policies, along with others done with China, have amounted to USD 189.25bn towards architectural projects since 2001.


China is not the only BRIC country who has recently signed an agreement for projects on the Orinoco Oil Belt. Last week, the Russian government signed five new energy deals including oil and gas deals that the PDVSA say “will meet part of the world demand of gas, specifically in Europe, Latin America and Asia”.


Projects across the oil belt were amended or signed including developments on the Carabobo oil field in Carabobo state. Other agreements made include the exploitation of Fields Lagunillas Tierra and Bachaquero oil fields in Lagunillas and Bachaquero respectively.


Venezuela and China have established a long term relationship, making many energy deals in the process including one in May 2012, amending the oil-for-loan deal from 2008, where Venezuela would borrow USD8bn from China and repay those with oil, using the money for welfare and infrastructure projects. Ramirez has said that the country has obtained USD33.98bn and paid back USD19.17bn in oil thus far. 

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