Venezuela, China to Jointly Invest $10 Billion in Oil Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--PDVSA, Venezuela's state-owned oil company, and the China National Petroleum Corporation (CNPC) (Beijing, China) will participate in a $10 billion joint project to produce up to 1 million barrels per day of heavy crude oil from the Orinoco Belt in Venezuela. The companies will hold 50% each of the new joint venture transport company; however, PDVSA will control 60% of all other joint projects to maintain the state-owned company’s pre-eminence.

The joint ventures, Petrosinovensa and Petrosumano, will process heavy crude from the Orinoco and also will work on new E&P projects on the Junín 4 and Carabobo blocks in Orinoco, where approximately 36,000 barrels of oil originally in place have been expected to be quantified and certified. The new production capacity could be processed at three refineries, which are to be built in Caripito, Batalla de Santa Inés and Cabruta in Venezuela under the existing Siembra Petrolera plan. This undertaking aims to increase Venezuela's production to more than 5.8 million barrels per day. The three new refineries, worth $7.5 billion, will process more than 500,000 barrels per day of heavy and sweet crude. There are plans to construct new refineries in China that will be able to process Venezuelan crude oil, as well as elevate the country’s crude oil exports to China to 1 million barrels per day.

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