Venezue­lan oil a risky in­vest­ment for China

The Washington Times Daily - - Front Page - BY KELLY HEARN

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

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