Venezuela announces Chinese financing for oil production

The Government of China will grant Venezuela a special loan of 5,000 million dollars to finance projects that will save Venezuelan oil production, the Minister of Economy and Trade reported today. Simón Zerpa Finance

. the planned new financing has a positive impact on the production of the public company Petróleos de Venezuela (PDVSA) in the Faja del Orinoco, a large heavy crude oil deposit in the east of the country and other areas of the country. pumping

".We obtained the direct investment authorization from the China Development Bank in the increase of production of PDVSA for more than 250 million dollars and we are already launching a Specific funding under a special credit that the Government of China delivers to Venezuela $ 5,000 million for projects for direct investment in production, "he declared a statement [19659002] Zerpa is in China participating in a bilateral meeting, from where he announced the funding to reactivate oil production, which comes from a severe decline that placed it to nearly 1.5 million barrels a day, compared to 3.5 million five years ago.

Experts say Venezuela needs investments of more than $ 20 billion for the oil industry to regain its production levels. Zerpa said the Chinese financing will help increase oil production in the Orinoco belt and other fields operated by PDVSA, whose president, General Manuel Quevedo, has promised to recover a million barrels this year.

to become Venezuela's largest financial partner, providing loans of more than $ 60,000 million over the last 10 years. Venezuela pays these credits with deliveries of crude oil. At the bilateral meeting, Zerpa said that the biggest challenge of the ties between Venezuela and China is to maintain the "fluidity of the relationship outside of the US imperialism's attack against both countries, it is therefore necessary to create alternative circuits. The Venezuelan mission in Beijing addressed the main issue of oil production, as well as economic and financial issues.

The Venezuelan economy is facing a contraction cycle accompanied by hyperinflation that has demolished the national currency whose relations with the dollar on the black market it is recording a record price of around three million bolivars, while in January it was less than one million.