August 22, 2005
Venezuela expects oil exports to China to soar

(Bloomberg) - "Petróleos de Venezuela SA, South America's largest oil company, expects its exports to China to rise about fivefold by 2012 as it seeks to lessen its dependence on the U.S. market.

Sales of crude oil and petroleum products to China may top 300,000 barrels within years, the state oil company said in a press statement. In an interview, Petróleos de Venezuela board member Asdrubal Chávez said the company expects to reach the 300,000-barrel a day mark by 2012. Sales this year have averaged about 68,800 barrels of oil a day.

'China has many opportunities for us,' said Chávez. Board member Chávez is accompanying Energy and Oil Minister Rafael Ramírez on a tour of China and Japan.

President Chávez has repeatedly said that he wants the South American country, the world's fifth-largest oil exporter, to diversify customers and reduce its dependence on the U.S. market. The U.S. currently takes about 60 percent of Venezuela's daily exports.

The South American country's oil and product exports to China average only 12,300 barrels a day in 2004.

The majority of Venezuela's exports to China as of now consist of Orimulsion, a boiler fuel alternative, Chávez said. The fuel is comprised of bitumen and water, and is burned by power plants to generate electricity (...)

Petróleos de Venezuela opened a sales office in China, its first in Asia. The office will be used to evaluate opportunities in exploration and production as well as refining, Ramírez, who doubles as Petróleos de Venezuela's president, said in a statement.

'This office will also strengthen ties between the two countries,' he said.

Petróleos de Venezuela also plans to spend up to $2.2 billion on tankers through 2012 to double its fleet and enable it to send more oil to Asia, Chávez said.

The company wants to buy 42 tankers, including at least 14 supertankers, Chávez said. Petróleos de Venezuela currently has 21 tankers, enabling it to carry 26 percent of the country's oil exports.

'With the new tankers, we'll be able to carry 45 percent of exports in 2012,' Chávez said (...)".