Venezuela and China sign oil and mining agreements

Venezuela and China have signed several new accords, one of which calls for Caracas to sell 500,000 barrels of oil per day to the Asian country and another providing $ 1 bn in Chinese credit for Venezuelan mining projects.
The agreements were signed here at the end of a meeting of a high-level bilateral commission, in a ceremony presided over by Venezuelan President Hugo Chavez and the chairman of the National Development and Reform Commission, Zhang Ping.

"Twenty-nine accords" were reached during the meeting "but only 15 were signed" in the official ceremony due to time restraints, Chavez said during a speech in which the fierce critic of US foreign policy hailed China as "a great power, but for good".
The agreements included a one-year contract -- signed by Venezuela's PdVSA and Petro China - that calls for Venezuela to ship 500,000 bpd of crude and related products to China.

Venezuela is the fourth-leading supplier of oil to China and the Asian country's fifth-biggest trade partnerin Latin America and the Caribbean, officials in Beijing say. At the beginning of this year, PdVSA said it was selling 331,000 barrels of oil per day to China and planned to increase that total to 1 mm bpd within a period of four years.
Venezuela and China also signed a framework agreement to create a joint refinery venture in the Venezuelan state of Guarico and a deal to quantify and certify oil reserves in the Boyaca 3 Block of Venezuela's Orinoco Belt.

State-owned China National Petroleum Corp. is participating -- along with companies from Argentina, Brazil, Chile, Ecuador, Spain, India and Iran -- in an international process to certify the Orinoco Belt's reserves, initially estimated at 234 bn barrels of heavy and extra-heavy crude. Added to another 80 bn barrels in other parts of Venezuela, these reserves would push the country's proven reserves to 314 bn barrels, the most in the world.
Caracas and Beijing also signed a framework agreement to set up and manage a joint venture to develop the Junin 8 Block in the Orinoco Belt. The goal is to produce 200,000 bpd of extra-heavy crude, according to an official report.

They also signed a memorandum of understanding that calls for Chinese companies to provide "offshore drilling services in deep- and ultra-deep (Venezuelan) waters".
In a finance deal, state-owned aluminium producer Corporacion Venezolana de Guayana and the China Development Bank signed a contract under which the latter will provide a $ 1 bn line of credit to fund mining projects in southern Venezuela.