WOW - Wonder how much fuel oil normally would go to the US? The Chinese don't sound like a bunch growling crude bears.
Venezuela swaps years of fuel oil for China wealth
Thu Aug 20, 2009 4:21am IST
Aug 19 (Reuters) - Venezuela has promised to send China almost all its fuel oil output for three years in return for an upfront payment of $8 billion as part of China's global push to ensure future supplies of key natural resources.
Venezuela's socialist President Hugo Chavez is a glad recipient of China's drive to tie down energy supplies in the medium term, which fits with his goal of reducing the OPEC nation's economic dependence on oil sales to the United States.
Venezuela also warmly receives Chinese construction, automobile and technology companies. Following are some facts about relations between the two countries.
* On a worldwide mission to secure future energy supplies, fast-growing China is drawn by the huge reserves of crude in Venezuela and its neighbor Brazil. The growing ties have rattled the United States, which is not used to serious competition for resources in South America.
* Chavez declared himself a Maoist on a trip to China last year and is keen to reduce Venezuela's dependence on oil sales to the United States, which he calls the empire. As well as the fuel oil futures, China companies are involved in four joint oil ventures with Venezuela's PDVSA.
* Fueled by Venezuela's easy credit and almost free gasoline, demand for vehicles in the OPEC nation soared during an oil boom that ended abruptly last year. China was there to help, exporting thousands of cars and motorbikes that now buzz round Caracas' busy streets.
* After Washington told Brazil it could not sell Chavez Super Tucano aircraft he wanted for anti-narcotics flights, he turned to China, which sold him 24 K-8 military training planes along with 10 radars.
* Chinese companies are also snapping up infrastructure contracts, including a $7.5 billion project to build a railway connecting Venezuela's western farming region with its eastern oil fields. (Reporting by Marianna Parraga and Frank Jack Daniel; Editing by Christian Wiessner) |
