March 26, 2007
Venezuela and China set agreements to boost strategic integration

(Agencia Bolívariana de Noticias) - " The Venezuelan and China Governments undersigned this legal instruments to consolidate the integration in diverse strategic areas. The act counted with the presence of the President of the Bolívarian Republic of Venezuela, Hugo Chávez Frías, and the leader of the Communist Party of China, Li Changchun.

By virtue of the pacts signed in the Ayacucho Hall of the Miraflores Palace, both nations agreed the Cooperation Agreement for the donation of CNY 10 million (about US$ 1,291,655) in order to finance projects agreed between both nations.

The sign was in charge of the Minister of the Foreign Affairs, Nicolás Maduro, and the Ambassador of the Popular Republic of China to Venezuela, Ju Yijie.

It was also signed the Petrozumano Agreement, aimed to the constitution of the Petrozumano Company, S.A.

The objective of this company will be exploration activities to look for hydrocarbon wells, extraction in its natural state, recollection, transport, and initial storage.

The sign was in charge of the Minister of the Popular Power for Energy and Petroleum (Menpet-Spanish acronym) and President of the state-own Venezuelan Oil Company (Pdvsa), Rafael Ramírez, and for China, the President of the National Petroleum Corporation (NPC), Jiang Jieming.

The Venezuelan and Chinese Governments signed the Energetic Cooperation Agreement between Pdvsa and NPC. This agreement will allow to evaluate the constitution of a mixed company in Sinovensa area, which will include an expansion of the south block MPE-3 (at the Orinoco Oil Strip) subject to solve the current problems between both companies.

With the sign of this agreement a mixed company for oil transportation and tankers construction will be formed in order to create its own fleet.

Moreover, Pdvsa and the China Petroleum Technology and Development Corporation (CPTDC) signed a document to constitute a mixed company: Chinese-Venezuelan Industry of Drills, S.A.

The intention is to promote the constitution between Pdvsa and CPTDC the offering of oil wells service and maintenance, in charge of the Pdvsa executive, Luis Vierma, and the General Manager for Europe and America Regions, Li Shiju.

The next document was the Fuel Oil Supply Contract, which will allow products supplying to the Popular Republic of China. This document was signed by the Commerce and Supply Manager of Pdvsa, Asdrúbal Chávez, and the representative of China National United Oil Corporation (CNUOC), Zhao Yong.

They also signed the Oil Supply Contract, which will allow the oil expending to China.

Recently, the President of Venezuela said that, currently, 300 thousand barrels a day are expended to China. However, the goal for 2012 is to supply about one million barrels a day to this country, in which the alliances that are taking place will help.

Chávez explained that among the proposals of the CNPC, it highlights the constitution of various mixed companies for the exploration, exploitation, refining, and even transport of the Venezuelan oil.

The first of them would be 60% Pdvsa and 40% CNPC. It would have as main objective the oil exploitation at the Orinoco Oil Strip.

The second project has to do with the construction, in Asian lands, of three refineries of Venezuelan oil.

The third plan, mentioned by Chávez, consists on the constitution of a mixed company (50% and 50%) for shipping transport, 'to cross the seven seas of the world with Venezuelan oil, to carry and bring to China and other countries, negotiating it together', he pointed.

'China is committed to us and we are making our best with the undersigned projects that, with no doubt, are going to shape the contradictions internationally, because we have proposed China to supply them oil. While some people said no, saying that it was too far, we are demonstrating them that is a falsehood', said the Venezuelan President".