March 27, 2007
Venezuela and China initial five energy agreements

(El Universal) - "Venezuela and China established a USD 5 billion strategic fund for different bilateral projects and initialed five hydrocarbon agreements.

President Hugo Chávez, who welcomed Communist Party of China's high official Li Changchun at the presidential palace of Miraflores, downtown Caracas, said the fund would start operations with USD 4 billion provided by China and USD 2 billion contributed by Venezuela.

The Venezuelan ruler added that, based on his reports, 'this is the first time China undertakes a similar move with another country,' Efe informed.

'Venezuela is free now and wants to become a sure and expanding supplier source of oil for China. Last year we jumped from zero barrels to 300,000 bpd and we are set to end this year at 500,000 bpd, under the agreements we have executed,' Chávez underscored, reasserting his commitment to sell one million barrels per day of oil to China by 2012.

Under the accords initiated, Venezuela and China are to organize joint ventures for joint development of heavy-crude oil in oilfield Campo Junín, in Orinoco strip, eastern Venezuela; hydrocarbon exploitation in China; installation of three refineries; construction and management of oil supertankers; and supply of fuel oil to China.

Venezuelan Minister of Energy and Petroleum Rafael Ramírez told the Venezuelan official TV channel VTV that investments are around USD 10-13 billion."