Pdvsa to build joint refinery in China

State-run oil company China National Petroleum Corp (CNPC) and state-owned oil company Petróleos de Venezuela SA (Pdvsa) will start building a mega joint refinery project in the southern coast of China this month. This move will pave the way for more Venezuelan crude oil shipments to the world's second-largest oil consumer.

CNPC, which operates core businesses via PetroChina, has been preparing for kicking off the construction of the 400,000 barrels-per-day (bpd) Jieyang plant next weekend, two CNPC officials said, as reported by Reuters.

The construction of the refinery in the east of Guangdong province could take three to four years, a CNPC planning manager said.

Venezuela's oil sales to China could almost triple upon completion of the refinery, which has been designed to process Venezuelan heavy oil.

The Chinese environmental agency cleared the way for the USD 9.08 billion refinery in January 2011 and the State Council, which is China's cabinet, would have endorsed the project recently, according to Chinese media.

CNPC owns 60 percent of the refinery and Pdvsa owns 40 percent.