China Trade Information

China National Petroleum Corp (CNPC) said that the government of Venezuela has granted oil exploration rights in the Sumano field to its joint venture with state-owned Petroleos de Venezuela SA (PDVSA).

CNPC will take a 40 pct interest in any commercial production in the oil block, it said on its website.

CNPC and PDVSA will also set up a joint venture soon to develop two oil blocks in Venezuela’s Orinoco oil field, it noted.

In August last year, China and Venezuela signed a series of oil development deals during Venezuelan President Hugo Chavez’s visit to China.

One of the agreements was for CNPC to team up with PDVSA to set up a joint venture to develop a bloc in the Junin area of the Venezuelan Orinoco oil field, according to a report by Agence France-Presse.

According to the other agreement, the two companies will jointly explore an oil field in Venezuela’s Sumano region.

Chavez said then that Venezuela expects to more than triple its oil exports to China by 2009 and increase deliveries more than sixfold within 10 years.

Venezuela exported 150,000 barrels a day to China in 2006.

Tags: CNPC, Petroleum

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