Venezuela-China sign $16bn oil deal

Chavez says deal, along with another with Russian firms, will produce 900,000 barrels.

    Chavez, left, announced the oil deal with China
    during a visit to a school [AFP]

    Venezuela announced last Saturday that it had also signed a similar deal with a Russian consortium during Chavez's recent visit to Moscow.

    Russian investment

    The deal will see the group of five Russian companies invest more than $20bn over three years, and gives them rights to drill for oil in the Junin 6 field, which is estimated to hold 53 billion barrels of heavy crude.

    in depth

      Chavez's 'historic' China strategy
      People and Power: Total Control
      Witness: Red Oil

    "Adding both [the Russian and Chinese investments] it comes to $36bn for the next three years with the objective of producing in a partnership with Venezuela - with PDVSA holding most shares - 900 thousand barrels per day of crude, nearly a million," Chavez said.

    "This good crude will be negotiated along with the Russians by Russian companies and Chinese companies."

    Venezuela says it has proven oil reserves of about 142.3 billion barrels, but some experts estimate that the Orinoco basin could hold an additional 235 billion barrels.

    Venezuela, the world's 11th-largest oil producer, relies on its vast reserves for 93 per cent of exports and nearly half the government's budget.

    But this has been hit as world oil prices have fallen 50 per cent from last year's peak, to trade at $72.51 a barrel on the New York Mercantile Exchange on Wednesday.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    John Pilger Q&A: 'US missiles are pointed at China'

    John Pilger Q&A: 'US missiles are pointed at China'

    Journalist John Pilger thinks the US and China might be on the path to war. "My film is a warning," he says.

    Why Jerusalem is not the capital of Israel

    Why Jerusalem is not the capital of Israel

    No country in the world recognises Jerusalem as Israel's capital.

    Sadly but frankly, Donald Trump is not going anywhere

    Sadly but frankly, Donald Trump is not going anywhere

    Trump isn't going to be impeached by this or perhaps any future Congress as currently constituted.