Just seven months since signing a financial business venture with China, Venezuela’s oil production in a joint venture with China has doubled, showing promise for the Bolivarian country’s future economic endeavors.
Rising production of heavy crude at Sinovensa, owned by PDVSA subsidiary Venezuelan Petroleum Corporation (CVP) and China National Petroleum Corporation (CNPC), could help turn Venezuela’s output around after suffering the lowest production levels in nearly 70 years.
Sinovensa, which is located in the Orinoco oil belt in southern Venezuela and is the second-largest partly foreign-owned oil operation, now produces some 130,000 barrels per day (bpd), CVP said in a Facebook post. The report is a sharp contrast from April’s which was 69,400 bpd, the company said.
September’s bilateral strategic agreement with China opened a world of doors for the South American country after the brutal sanctions imposed by the United States cost the nation some US$6 billion since August, an October analysis written by Canadian political analyst Joe Emersberger said. The sanctions have targetted a range of Venezuelan trading possabilities, including banning the trade in Venezuelan debt or in Venezuelan gold.
China and Venezuela signed 28 bilateral strategic cooperation agreements in the areas of oil, mining, security, technology, finance, and health during the closing ceremony of the XVI High-level Diversified Commission meeting in Beijing on September 14.
China has lent over $50 billion to Venezuela through oil-for-loan agreements over the past decade, securing energy supplies for its fast-growing economy.