Venezuela becomes China’s oil-providing partner for 500 yrs

[batmannow]

GEO World
Venezuela becomes China’s oil-providing partner for 500 yrs
Updated at: 1730 PST, Thursday, February 19, 2009

CARACAS: Venezuela and China Wednesday signed 12 cooperation agreements and doubled their joint investment fund to 12 billion dollars, as Vice President Xi Jinping's wound up his visit before heading to Brazil.

The China-Venezuela investment fund, set up in 2007 with a starting capital of six billion dollars, was boosted to 12 billion, with China contributing eight billion and Venezuela the rest, officials said.

"The fund is part of the strategic alliance that bolsters our common interests and confirms Venezuela's standing as an oil-providing partner (to China) for the next 500 years," President Hugo Chavez after meeting with Xi.

Chavez said the joint fund would be invested in education, health and infrastructure programs in Venezuela.

The 12 cooperation agreements include one calling for Venezuela's state-run oil company PDVSA to sell China's National Oil Company between 80,000-200,000 barrels of oil per day to pay off a debt between development banks in both nations.

Another agreement calls for building an oil refinery in China to handle some 400,000 barrels of Venezuelan crude from the oil-rich Orinoco basin.

China currently imports about 364,000 barrels of crude oil per day from OPEC member Venezuela, a figure expected to rise to 500,000 barrels in late 2009.

 

[Ali.009]

Venezuela sign 12 agreements including oil-providing to China for next 500 yrs​

Venezuela and China Wednesday signed 12 cooperation agreements and doubled their joint investment fund to 12 billion dollars, as Vice President Xi Jinping's wound up his visit before heading to Brazil. The China-Venezuela investment fund, set up in 2007 with a starting capital of six billion dollars, was boosted to 12 billion, with China contributing eight billion and Venezuela the rest, officials said. "The fund is part of the strategic alliance that bolsters our common interests and confirms Venezuela's standing as an oil-providing partner (to China) for the next 500 years," President Hugo Chavez after meeting with Xi. Chavez said the joint fund would be invested in education, health and infrastructure programs in Venezuela. The 12 cooperation agreements include one calling for Venezuela's state-run oil company PDVSA to sell China's National Oil Company between 80,000-200,000 barrels of oil per day to pay off a debt between development banks in both nations.

 

[SurvivoR]

Venezuela sign 12 agreements including oil-providing to China for next 500 yrs​

Venezuela and China Wednesday signed 12 cooperation agreements and doubled their joint investment fund to 12 billion dollars, as Vice President Xi Jinping's wound up his visit before heading to Brazil. The China-Venezuela investment fund, set up in 2007 with a starting capital of six billion dollars, was boosted to 12 billion, with China contributing eight billion and Venezuela the rest, officials said. "The fund is part of the strategic alliance that bolsters our common interests and confirms Venezuela's standing as an oil-providing partner (to China) for the next 500 years," President Hugo Chavez after meeting with Xi. Chavez said the joint fund would be invested in education, health and infrastructure programs in Venezuela. The 12 cooperation agreements include one calling for Venezuela's state-run oil company PDVSA to sell China's National Oil Company between 80,000-200,000 barrels of oil per day to pay off a debt between development banks in both nations.

Now what will US reaction i am speechless.

 

[Communist]

Now what will US reaction i am speechless.

Long Live Venezuela!!!

This is indeed a slap on the face of the cow boy!!

The golden cow boy days are over....

 

[Omar1984]

This is very good news for both China and Venezuela, I'm happy for both friendly countries.

 

[metalfalcon]

Chavez has Found Just One More anti American in his List of Allies.

Nice Going Venezuela.

 

[TOPGUN]

Good news for both nations ! i wonder how are reltions with Pak & Ven if there is any??

 

[Omar1984]

This is great news for both China and Venezuela.

I'm happy for both China and Venezuela, both are friendly countries to Pakistan.

 

[Omar1984]

Good news for both nations ! i wonder how are reltions with Pak & Ven if there is any??

Venezuela and Pakistan have no problems with each other..Pakistan can get closer to Venezuela....

 

[TruthSeeker]

Now what will US reaction i am speechless.

Venezuelan crude oil is very heavy and sticky. Right now most goes to Hess Oil Company refineries in the US Gulf Coast area. Very few refineries can accept Venezuelan crude so China will have to build it's own new refineries, buy the US ones (maybe?) or buy refined crude from the US. Anyway, by the time this deal yields any benefit, energy technology will have moved on and Venezuelan crude will be a mill stone around Chinese necks .....

 

[Neo]

Nex 500 years? Venezuela doesn't even have that kind of deposits, their wells would probably dry up within 100 years. (proved reserves 78 bbl against production rate of 2.6 milion bpd)

 

[TopCat]

I thought world gonna dried up in oil in next 25 years but they have it for 500 years

 

[dbc]

Nex 500 years? Venezuela doesn't even have that kind of deposits, their wells would probably dry up within 100 years. (proved reserves 78 bbl against production rate of 2.6 milion bpd)

Chevez must've been a used car salesman looks like he sold China a lemon . TruthSeeker is right, Venezuelan crude is refined in the US - probably the reason we don't take Chevez too seriously..

Sorry Communist and SurvivoR

 

[Solomon2]

Quite possibly the Chinese will buy one or two American refineries to handle the product - heating oil. Looks like it'll be a good deal for everybody.

 

[KnightRyder]

What a great thing to piss off the pro-hegemony neocons in washingtion - The zeros in 500.




The more economic and better question is "How do "I" Benefit from this news?"

(Just trying to convince myself to go back to studying!)