Venezuela cedes Sinovensa stake to CNPC

Venezuela cedes Sinovensa stake to CNPC

Corporate & Sovereign Strategy Equity Gas Venezuela China

Venezuela has agreed to cede a 9.9% stake in the Sinovensa joint venture to China National Petroleum Corporation last week. The agreement stipulates CNPC will participate in drilling and extraction operations in 300 new wells in Venezuela’s Ayacucho region. CNPC already holds 40% in the JV.

The two governments also inked 28 agreements ranging from trade concessions and economic development initiatives during Venezuelan president Nicolas Maduro’s trip to Beijing last week.

According to Venezuela’s economy and finance ministry, both nations have collaborated on a combined 570 projects worth $62m. President Maduro has stated PDVSA will increase its daily oil production by 1m barrels.

PDVSA previously signed an agreement with CNPC for $2.7bn to develop a refinery in Nahai in China. A credit line was established in November 2017 between CNPC and the South American country.

According to local reports, Maduro would seek out a $5bn credit extension during his visit to Beijing.

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