PdVSA signs fuel oil deal with PetroChina
Under a contract worth about $ 431 mm (based on the average closing price of $ 39.44 a barrel) Petroleos de Venezuela
(PdVSA) has agreed to sell fuel oil for a year to China's largest oil company PetroChina Oil to help meet surging
energy demand.
PdVSA said it will sell a PetroChina a total 30,000 bpd, the first cargo of 1.8 mm barrels was shipped just days ago.
Venezuela has repeatedly said that it wants to diversify its customer base but currently sends about two-thirds of
its oil exports (1.5 mm barrels of oil a day) to the United States.
PdVSA president Rafael Ramirez, also Venezuela's energy minister, is to visit China in July. He had postponed the
trip due to scheduling problems.
Demand for energy is growing in China as its economy expands. It grew 9.5 % in 2004, the fastest pace in eight
years.
On June 13, Ramirez said that Venezuela and China were also discussing the creation of an extra-heavy oil joint
venture to take crude from Venezuela's Orinoco Heavy Oil Belt.
