February 4, 2005
CNPC links with PDVSA in alliance

(Upstream) - "China National Petroleum Corporation (CNPC) has formed an alliance with Venezuelan oil company PDVSA for crude and gas exploration, production, transportation and oil trade.

CNPC and PDVSA agreed to establish a joint venture to explore 14 oil fields in the Zumano region of Venezuela's Anzoátegui state. The 14 fields are said to have potential reserves of 400 million barrels of crude, and 3 billion cubic metres of gas.

In addition to the alliance between CNPC and PDVSA, Venezuela has also committed to supplying 100,000 barrels of crude and 8200 tonnes of fuel oil to China per day, while China will provide $4 billion in loans to support energy and other projects in Venezuela.

CNPC is said to have also signed a co-operation agreement with Brazil's Petrobras, potentially covering refining, pipelines, exploration and production projects".