The State owned China National Petroleum Corporation (CNPC) has recently signed a framework agreement with Venezuela’s Petroleos de Venezuela, S.A. (PDVSA ) to form two joint ventures, one for heavy oil development in Venezuela and the other for oil refining in China. PDVSA will hold 60% and CNPC 40 % in the development of the joint venture project in Block Junin 4 of the Orinoco belt in Venezuela, with an estimated production capacity of 20 million tons per year. The refinery in China will refine the 20 million ton of crude oil from the Block Junin 4 joint venture. CNPC will hold 60% and PDVSA 40%.
Source: Xinhua, May 13, 2008