Caracas: President Hugo Chavez has said that Chinese and Russian oil companies have agreed to invest USD 36 billion in Venezuela's oil production over the next three years.
China pledged to invest USD 16 billion in Venezuela's eastern Orinoco oil belt, where it will operate alongside state-run Petroleos de Venezuela SA, or PDVSA, he said. PDVSA and China's National Petroleum Corp. have been working to reach an agreement since signing a statement of intent last year.
On Saturday, PDVSA announced that a consortium of five mostly Russian companies had also agreed to invest in the heavy oil-producing region, and Chavez said that investment would total USD 20 billion.
Two years ago, Chavez nationalised four major oil projects in the Orinoco region, and private and state-run investors have been slow to bid on new contracts that would increase production in the region's Carabobo field.
Nineteen companies paid USD 2 million each for technical information about the deposits, but PDVSA has repeatedly pushed back bidding as it deals with questions from the companies.
The world's 11th-largest oil producer, Venezuela relies its vast reserves for 93 percent of exports and nearly half the government's budget.
Bureau Report
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