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China and Venezuela sign agreements on Junin-4 and a long-term financing loan
Monday, April 19, 2010

On April 17, 2010, witnessed by Venezuela President Hugo Chavez, important agreements on Junin-4 Block and a long-term financing plan were signed between China and Venezuela in Caracas. Zhang Guobao, head of the Chinese National Energy Administration and Rafael Dario Ramírez Carreno, minister of Venezuela Energy and Oil signed the inter-government agreement on Junin-4 Block. CNPC President also Chairman of Petrochina Jiang Jiemin and China Development Bank Corp. President Chen Yuan signed a framework agreement on long-term financing cooperation with representatives from Bandes, PDVSA, Venezuela's Ministry of Finance and Ministry of Energy &Mines. Petrochina Vice President Bo Qiliang and PDVSA President Eulogio Del Pino signed an MOU on Junin-4 Block.

Junin-4 Block is located in the Orinoco heavy oil belt, covering an area of 325 square kilometers with recoverable reserves of 8.7 billion barrels. China and Venezuela will form a joint venture to operate the block which is expected to produce 2.9 billion barrels of extra-heavy crude within 25 years contract term.

Under the long-term financing cooperation framework agreement, China will provide Venezuela a 10-year wholesale financing loan. PDVSA and CNPC also signed an oil purchase and sale contract to guarantee PDVSA's repayment.

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