Business | Oil & Gas
China to invest $5b in Venezuela to boost crude output by 2012
China will invest around $5 billion in energy projects in Venezuela by 2012 as part of a plan to boost Venezuela's oil output, the South American country's energy minister told state television yesterday.
- Reuters
- Published: 00:00 August 29, 2006
Caracas, Venezuela: China will invest around $5 billion in energy projects in Venezuela by 2012 as part of a plan to boost Venezuela's oil output, the South American country's energy minister told state television yesterday.
Venezuelan President Hugo Chavez just completed a visit to China to sign cooperation accords as part of an effort to reduce Venezuela's dependence on United States energy markets.
Rafael Ramirez said China's participation in Venezuela energy ventures would "require in first instance around $5 billion in investment. This is very important because it is investment that we are attracting from China to Venezuela as part of our increase in (oil) production, which by 2012 will be at 5.8 million barrels per day," he said.
"Venezuela today is currently providing 150,000 barrels per day of oil and products to China, and we have made a joint plan to reach by 2010 up to 500,000 barrels per day," Rafael Ramirez said.
He added that the $5 billion from China included investment in a joint venture to operate the Zumano fields in eastern Venezuela and investment by China's CNPC in the Junin 4 block of the Orinoco heavy crude belt.
Venezuelan state oil company PDVSA is planning total investment of $56 billion by 2012 as part of an expansion plan that includes increasing natural gas production, boosting refining capacity and launching a wide-scale development of the Orinoco heavy crude belt.
Chinese energy company Sinopec will participate in the development of an oil block in the Gulf of Paria in eastern Venezuela, Ram-irez said. China will also help Venezuela build 18 new oil tankers by 2012.
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