Heading to the source: China's CNPC has reportedly takes a stake in Venezuela's Orinoco heavy oil region
CNPC ‘takes stake in Orinoco block’
China National Petroleum Company (CNPC) has reportedly signed a deal with Venezuelan state oil company PDVSA to form a joint venture to develop the Junin 4 Block in Venezuela’s Orinoco heavy oil region.
PDVSA will control the venture with a 60% share with CNPC holding the remainder, Thomson Financial News reported. It said the deal was signed last week during a visit to Venezuela by Chinese Vice Premier Hui Liangyu.
The companies reportedly plan to produce about 150 million barrels of oil per day from the block.
The companies were also reported to have signed a deal to jointly develop a refinery in China equipped to handle heavy crude from the Orinoco field as part of Venezuelan President Hugo Chavez to boost exports to the country.
The deal represents PDVSA’s first investment in China.
The refinery will be operated by CNPC unit PetroChina with a 60% stake.