President Hugo Chavez is vowing that Venezuela will provide China with all the oil it needs “for the next 200 years.” Chavez spoke Tuesday to a visiting delegation led by Chinese Vice President Xi Jinping. The two nations are expected to sign a series of accords on Wednesday.
Caracas sees China as a key partner in its strategy of diversifying oil sales away from the U.S., which buys about half Venezuela’s crude despite years of political tensions. The South American nation aims to increase exports to China to 1 million barrels a day by 2012, up from 330,000 currently.
Venezuela and China plan to build four oil tankers and three refineries in China capable of processing heavy Venezuelan crude.
Russia and Venezuela – two major oil powers and concerted action from these countries depends ensuring energy security. The talks with Russia President Hugo Chavez proposed the creation of a strategic alliance in the energy field. Also at the talks by representatives of Russian companies «TNK-BP», «LUKOIL» and «Gazprom» signed several agreements with the Minister of Energy and Petroleum of Venezuela, president of state Petroleos de Venesuela (PdVSA) Rafael Ramirez Carreño.
«LUKOIL» entered into an agreement with PdVSA on the joint study of the Junin-3 block in the Orinoco oil belt rivers in the east. Junin-3 block is located in the zone of heavy oil (ie, with a higher sulphur content, paraffin, smolistyh substances), which consequently requires a more complex mining and processing technologies. «TNK-BP» and PdVSA signed an agreement on joint exploration block Ayacucho-2 oil Orinoco province.
As you know, President of Venezuela ceased relations with western oil companies. In particular, as a result of nationalization of the oil industry Exxon Mobil lost assets in that country. Now for the development of heavy oil and offshore sites will be brought Russian companies.