Venezuela seeks $8 billion for fuel oil sales to China
Venezuela has asked for an $8 billion upfront payment from China in return for almost all of its fuel oil output for three years until 2012, reports said.
Venezuela's President Hugo Chavez has welcomed China's effort to secure future supplies of key natural resources, as it reduces Venezuela's dependence on oil sales to the United States.
''China has got more than enough dollars. Well, not more than enough, but they have very large reserves, close to $2 trillion,'' Chavez said on Sunday.
Under the two countries' terms of contract, Venezuela is obliged to send China most of its production until 2012, according to a Reuters report.
The contract states that Venezuela is required to send between 80,000-200,000 barrels per day (bpd) of fuel oil to a subsidiary of China National Petroleum Corporation (CNPC) over three years in return for a $4 billion fund.
The deal was extended to $8 billion earlier this year in return for between 207,000-253,000 bpd of fuel oil until 2012. Venezuela's total fuel oil output is 293,000 bpd.
Critics said the current agreement favors China, which has already paid out about $46 billion across the globe from Brazil to Kazakhstan to secure energy supplies.
Venezuela, an OPEC member, exports more than 1 million bpd of crude and derivatives to the US, its main customer. Chavez said on Sunday he hoped to ship a similar amount to China within four years, but revised down his forecast for this year to 400,000 bpd.
Venezuela's President Hugo Chavez has welcomed China's effort to secure future supplies of key natural resources, as it reduces Venezuela's dependence on oil sales to the United States.
''China has got more than enough dollars. Well, not more than enough, but they have very large reserves, close to $2 trillion,'' Chavez said on Sunday.
Under the two countries' terms of contract, Venezuela is obliged to send China most of its production until 2012, according to a Reuters report.
The contract states that Venezuela is required to send between 80,000-200,000 barrels per day (bpd) of fuel oil to a subsidiary of China National Petroleum Corporation (CNPC) over three years in return for a $4 billion fund.
The deal was extended to $8 billion earlier this year in return for between 207,000-253,000 bpd of fuel oil until 2012. Venezuela's total fuel oil output is 293,000 bpd.
Critics said the current agreement favors China, which has already paid out about $46 billion across the globe from Brazil to Kazakhstan to secure energy supplies.
Venezuela, an OPEC member, exports more than 1 million bpd of crude and derivatives to the US, its main customer. Chavez said on Sunday he hoped to ship a similar amount to China within four years, but revised down his forecast for this year to 400,000 bpd.