Venezuela seeks $4 billion from China's exim bank

6/6/2013

Venezuela seeks $4 billion from China's exim bank

BY KEJAL VYAS

CARACAS -- Venezuela is negotiating a $4 billion credit line from the Export Import Bank of China that would be used for purchasing oil field equipment, PDVSA said.

The deal adds to a separate $4 billion loan that PDVSA will receive from the Chinese government to boost oil production at Petrolera Sinovensa, a joint venture in Venezuela's vast Orinoco heavy oil belt.

The latest credit line was discussed by bank President Li Ruogu and Venezuela Oil Minister Rafael Ramirez, who concluded a tour of the Asian nation.

Venezuela has secured a number of financing agreements with its partners, ranging from Russia's Rosneft to Chevron over the past few weeks as it looks for funding for its plans to rapidly boost production capacity over the next decade. The Venezuelan government says it produces close to 3 MMbopd and wants to raise that to 4 MMbopd over the next few years, with the biggest increase coming from the Orinoco region.

China has been an important partner for Venezuela, granting the resource rich country nearly $40 billion in loans in recent years in exchange for oil shipments.

Mr. Ramirez has said that Venezuela currently spends more than 600 Mbopd to China and aims to reach 1 MMbpd within a couple of years.

In a statement, PDVSA said Mr. Ramirez met with officials from China's Citic Group, who also offered financing to begin laying out infrastructure plans for developing and extracting Venezuela's mineral deposits.

Dow Jones Newswires

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