Venezuelan oil a risky investment for China
BUENOS AIRES | China has poured billions of dollars into Venezuela’s oil sector to expand its claim over the country’s massive oil reserves.
But Beijing is getting relatively little for its investments, and Chinese officials are increasingly frustrated with Venezuelan President Hugo Chavez, according to energy analysts and former managers of the state oil company, Petroleum of Venezuela, commonly known as PDVSA.
Mr. Chavez, who is battling a life-threatening recurrence of cancer, said his goal is to send 1 million barrels of oil a day to China, which has given Venezuela more than $30 billion in loans and promised billions of dollars more in energy investments by 2016.
PDVSA claims to send 410,000 barrels a day to Chinese markets, the bulk of which is used to pay back the loans.
Already this year, PDVSA has announced that Citic Group Corp., China’s largest state-owned investment company, will acquire a 10 percent stake in the Petropiar heavy-crude project held with PDVSA and U.s.-based Chevron Corp. It also said that the China Development Bank