Languages
Page last updated at 00:55 GMT, Thursday, 17 September 2009 01:55 UK

China in huge Venezuela oil deal

By Will Grant
BBC News, Caracas

Hugo Chavez visiting a Venezuelan oil facility. File photo
Mr Chavez is seeking greater economic independence from the US

Venezuela has announced a $16bn (£10bn) investment deal with China for oil exploration in the Orinoco river.

The move comes shortly after Venezuela signed a similar agreement with Russia, which is estimated to be $20bn (£12bn).

President Hugo Chavez said the deals would boost oil production in Venezuela by about 900,000 barrels per day.

Investors in Venezuela's oil industry have complained for months that a lack of government investment in infrastructure has hurt production.

Multi-polar world

Speaking on state television, Mr Chavez said the deal with China was over three years and that the investment would go towards developing heavy crude oil resources in the Orinoco River belt.

For President Chavez it is part of a wider effort to increase his base of bilateral partners in the oil industry.

The socialist leader often speaks of what he calls a "multi-polar world" in which Latin American countries are less dependent on Washington.

However, US companies and the US government are still the mainstay of the Venezuelan energy industry.

The Venezuelan leader will hope that these multibillion dollar deals, signed with countries which are more friendly to his "21st Century Socialist Revolution", will give him further economic independence from Washington.



Print Sponsor


SEE ALSO
Is Venezuela's oil boom set to bust?
28 Oct 08 |  Americas
Venezuela aims for China oil deal
25 Mar 07 |  Business
China deepens Latin America ties
21 Nov 08 |  Americas
Timeline: Venezuela
01 Aug 12 |  Country profiles

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific