Pdvsa meets 96% of oil export goals to China

The loans China has granted to Venezuela through the China-Venezuela Joint Fund have been strongly supported by Hugo Chávez's administration. Venezuelan officials have rejected criticism of a possible loss of sovereignty and have praised the availability of billions of dollars scheduled to be invested in infrastructure and other government projects.

State-run oil company Petróleos de Venezuela (Pdvsa) has committed to pay the loans under the Chinese Fund. On behalf of the government, Pdvsa has shipped oil and oil products to China since 2007 at market prices, according to Minister of Petroleum and Mining and Pdvsa President Rafael Ramírez. Based on data released last week by the state-owned oil company, Venezuela has achieved 96% of the oil export goals set under the agreements signed with Chinese authorities.

Overall, Venezuela has received USD 32 billion from China. Meanwhile, the Asian country has bought USD 27.8 billion in crude oil and oil products, and has received USD 10.48 billion to pay back loans. The balance in favor of Venezuela amounts to USD 11.77 billion.

Breakdown

Under the First Heavy Fund -established in 2007- China granted a USD 4 billion loan to Venezuela. In return, Pdvsa shipped an average of 101,000 bpd of crude oil and oil products to the Asian country in 2007-2010 (the goal was 100,000 bpd), at a rate of 143,000 bpd in 2007; 86,000 in 2008; 91,000 in 2009 and 82,000 in 2010.

The Second Heavy Fund was launched in 2009 and included another USD 4 billion loan granted by China. Pdvsa exported an average of 143,000 bpd, out of a planned goal of 153,000 bpd. Through this agreement, Venezuela shipped to the Asian superpower 126,000 bpd in 2009; 107,000 bpd in 2010 and 195,000 bpd in 2011.

In October 2010, Venezuela and China signed the Large Volume Fund, under which China would grant USD 20 billion to Venezuela in US dollars and in Chinese yuan, as projects are implemented.

Through this agreement, Pdvsa shipped 211,000 to China in 2010 and 220,000 bpd in 2011, out of a goal of 200,000 bpd in 2010 and 250,000 bpd in 2011. According to a Pdvsa report, Venezuela has sold USD 9.37 billion to China through this agreement, with a 10-year duration. For its part, Venezuela is expected to ship 300,000 bpd to China in 2012.

etovar@eluniversal.com

Translated by Gerardo Cárdenas