CNPC, PDVSA reach JV deal for Orinoco exploration

China's CNPC said Venezuela has granted oil exploration rights in Sumano oil field to its joint venture with Venezuela's state-owned PDVSA.

Nov. 14, 2007

Eric Watkins
Senior Correspondent

LOS ANGELES, Nov. 14 -- China National Petroleum Corp. said Venezuela has granted oil exploration rights in Sumano oil field to its joint venture with state-owned Petroleos de Venezuela SA (PDVSA).

CNPC said it will take a 40% interest in any commercial production in the block, with the balance reserved for PDVSA. The two firms will set up a joint venture to develop two additional blocks in Venezuela's Orinoco heavy oil belt, but CNPC did not name the blocks.

China and Venezuela signed a series of oil development deals during Venezuelan President Hugo Chavez's visit to China in August 2006, including one for CNPC and PDVSA to jointly develop a block in the Junin area of the Orinoco belt.

Contact Eric Watkins at [email protected].