Chavez Seeks to Boost Oil Output With $16 Billion China Deal

[bemildred]

Source: Bloomberg

Sept. 17 (Bloomberg) -- Venezuelan President Hugo Chavez said that China will invest $16 billion to boost oil production in the country, as part of a strategy to reduce dependence on the U.S. and strengthen oil ties with other nations.

A Venezuelan commission is meeting with Chinese officials, and the deal to develop the block with state oil company Petroleos de Venezuela SA will be completed in October, Chavez said yesterday in comments on state television. He didn’t provide details on the names of the Chinese firms involved or the Venezuelan block where they will invest.

The latest deal with China, which will occur over three years, comes on top of a joint venture agreement with a group of five Russian companies announced last week to develop the Junin 6 field for an investment of $20 billion. Chavez said that output from the Russian and Chinese projects in the Orinoco oil fields combined will produce 900,000 barrels of crude a day.

“Yesterday after intense days of negotiations in Beijing, an agreement was made with China to invest $16 billion over the next three years,” Chavez said. “Adding the deals with Russia and China there will be investments of $36 billion to produce with our partners.”

Read more: http://www.bloomberg.com/apps/news?pid=20601086&sid=aR9vgkncL_A4

[Pavulon]

1. Bet he will not nationalize that shit..

or china will have his ass.

[Warren Stupidity]

5. Why it was just a short while ago that you all were predicting

that nobody would work with Venezuela anymore because of the re-nationalization of the oil industry and that total collapse was just around the corner.

The deal is structured through PDVSA, so you are in a sense correct as there is nothing to nationalize. It is a crying shame though that so much of the profits will be funneled back into Venezuela instead of into the pockets of the global corporate elites.

[Pavulon]

8. Just like china in sudan.. They are such a force for good.

I am sure it will be all smiles from now on.

[Warren Stupidity]

11. The rest of the planet has a long way to go before they get into our league

of perfidious international malevolence. But we digress. How is it exactly that Venezuela's re-nationalized oil industry (which was illegaly denationalized under the prior administrations and their imf cronies) forgot to collapse under the mismanagement of all those socialists? After all, one need only look at the disaster of Norway's nationalized oil industry to see what sort of mess that can lead to. Highest living standard on the planet, who the heck wants to live in that sort of hell hole?

[Pavulon]

12. It is a joint deal with joint assets, just like the ones

he seized earlier. I would bet that china or russia would not be as friendly. Maybe they find some more dioxin.

Like i said take a look at china in sudan, life there is just wonderful.

So someone flips him out of office I guess they can just seize them and pick up where they left off with exxon..

[Warren Stupidity]

18. The only oil assets seized were the ones that wouldn't negotiate.

And even then they were compensated for the seizure. What happened under re-nationalization is that PDVSA, the domestic oil company was returned to government control and the crap deals with foreign oil companies that were made under the corrupt prior administrations were renegotiated on terms that actually benefited the Venezuelan people rather than the global corporate elites. All but one of the foreign companies renegotiated and remained in partnerships with PDVSA. More precisely these 'seizures' you are having such an upset about put PDVSA into majority control of all of the foreign partner ventures. Control of Venezuela's oil resources reverted to the people of Venezuela. Horrors! It is like they think it is their national resource or something. With the exception of ExxonMobile, the foreign nationals renegotiated and received compensation. Exxon refused to negotiate. Compensation is tangled up in courts.

[Pavulon]

42. Cool, that means if the people flip him out. like in Honduras

china and russia get left out? I just dont see putin in court. They were made an offer they could not refuse... Not like I feel sorry for exxon, but you see the path when people just start taking other people's stuff.

[EFerrari]

59. How did Exxon's oil get under Venezuela's territory!?

lol

[Joe Chi Minh]

38. don't be nasty, now. They're having so many bitter pills to swallow lately.

[Arctic Dave]

2. I think I called this about a year and a half ago.

Some said that Chavez would never go to china because they couldn't refine the heavy crude, I guess they were wrong.

[Pavulon]

3. Now they just have to get it there..

i am sure that is a cheap and easy procedure. sailing around the cape in a panamax tanker is pretty easy.

[Arctic Dave]

6. Depending on when they finish the fields the will probably be able to go through the upgraded canal

[Arctic Dave]

10. Depending on when they finish the fields the will probably be able to go through the upgraded canal

[Prometheus Bound]

23. They're shipping 385,000 tons of fuel oil each month to China, so what's the problem?

[Joe Chi Minh]

39. Oh, of course, they won't have thought of the logistics or economics.

How foolish of them! I expect they'll be going back to the US cap in hand, begging you to take over their assets again.

[Pavulon]

46. Then we would have to set up an overthrow

to bring in a guy who is aligned with us.. I mean that could never happen, and the "people" see the error of their ways and seize the assets of china? Like 02 in reverse?

Life is funny like that. Again, china has cheaper sources of oil, they are not shipping it all back. it all sells into a pool. So now others just get a cut of your gas dollar before you consume it.

That comes in the form of usaid when currency markets fail or oil prices go back to 20 a bbl.

[twitomy]

4. Gotta pay for those new tanks somehow...NT

[Warren Stupidity]

7. and schools, roads, public health system, etc.

But I do note that unlike our bankrupt system, Venezuela can actually afford to pay for the stuff its government purchases. Venezuela's military spending as fraction of its GDP is just not in our league, so you don't have to get too scared of those nasty socialists with their strange latin ameican ways.

[Pavulon]

9. As long as you keep driving..they are good

they are a single act show. They do NOTHING but export oil.

[junior college]

13. Please don't make stuff up to support the freeper agenda

Venezuela manufactures and exports steel, aluminum, transport equipment, textiles, apparel, beverages, and foodstuffs. It produces cement, tires, paper, fertilizer, and assembles cars both for domestic and export markets. The petroleum sector accounts for only a third of GDP.

[Warren Stupidity]

16. it has a long history of allergic reactions to latin american socialism

I'm still waiting for it to explain how Norway ended up with the highest standard of living on the planet, it being a socialist hellhole of oil industry nationalization and all.

Plus TANKS! I mean that just does it.

[Pavulon]

43. Was it really low before, like the disaster in VZ? Or did it just get better?

social is not the problem, seizure of assets, silence of media, and consolidation of power is a problem.

Talk about marked words, I'll add you to the list of posters who get a bottle of french first growth if he leaves office voluntarily. At gunpoint in pajamas or dead does not count.

That makes about 5 of you, will cost me about a grand if he leaves office. I;m not worried about that bet.

[twitomy]

20. Let me update you ,"Junior"

Just a day or two ago Chavez inked a deal with the Russians worth billions to buy tanks and SAM's among other military hardware. You know, the kind of stuff used to enforce "social justice" Chavez style......

[junior college]

22. Wave the American flag and blabber on about freedom all you want

New tanks are a no brainer when the US is building military bases the Columbian border with Venezuela

[Prometheus Bound]

24. And Russian companies agreed to spend 20 billion developing a Venezuelan oil field.

[twitomy]

30. But of course if it was an American company developing

the oil fields, we would never hear the end of it.

[Prometheus Bound]

34. I somehow doubt that? Why would that be?

[EFerrari]

25. LOL!

[Peace Patriot]

27. Brazil spends EIGHT times what Venezuela does on the military, and of course

the US trumps all--by far the biggest, most cripplingly expensive, most lethal, most misused war force on planet earth. At least most other countries can truthfully claim their military expenditures are "defense." When was the last time the Pentagon actually defended us? They couldn't even defend their own headquarters in our nation's capitol! They are an aggressive war machine for killing millions of innocent people--Vietnamese, Iraqis (and maybe now Venezuelans?)--who have done us absolutely no harm. It has precipitated an arms race worldwide, destroyed world peace and is destroying our democracy.

[twitomy]

31. Yeah,,,

No other military on Earth has ever misued its military except big bad USA.

[dipsydoodle]

35. In terms of scale

that's an accurate statement.

[Warren Stupidity]

36. That of course is not what was stated.

Human civilization has a long history of militarized societies that abused their neighbors, we happen to be one of those nations at this point in time.

[Peace Patriot]

51. Clinton is saying Venezuela is a threat. How many hundreds of thousands of innocent

people has Venezuela's army slaughtered? How many thousands of prisoners have they tortured? How many countries have they invaded? And how many poor and working class people are being deprived of education, medical care and other social decencies in Venezuela, because of out of control military expenditures? And how many wars has Venezuela perpetrated for oil, for pipelines, for heroin routes and for no good reason at all except war profiteering?

I didn't say that "no other military on Earth has ever misused its military." Don't put those words in my mouth. I was pointing out our government's and our corpo-fascist media's obsession with anything Venezuela does, and their distortion of facts to the point of complete unreality (disinformation, psyops, propaganda, brainwashing), and that this lying and unreality is most egregious on military expenditures, given that Brazil spends eight times more than Venezuela on armaments, and the US not only spends vastly more, it perpetrates heinously unjust war on other people.

It was Brazil that proposed a "common defense" in South America (in the context of South America's new "common market," UNASUR), not Venezuela. It is Brazil's that manufacturers armaments and sells them to others, not Venezuela. Brazil's president said that the Bushwhacks' reconstitution of the US 4th Fleet in the Caribbean is a threat to Brazil's oil reserves (everybody south of the border knows that it is a threat to Venezuela's). And it is neither of these S/A countries which has one of the worst human rights records on earth--that honor goes to Colombia, on which the US lards $6 BILLION in US taxpayer dollars in military aid. And guess what country violated Ecuador's territory last year by dropping ten 500 lb "smart bombs" on a FARC guerrilla camp, slaughtering 25 sleeping people without benefit of trial, and guess whose bombs they were using? Colombia is a threat to the peace of South America. The US is a threat to the peace of South America. Venezuela is not. In fact, Venezuela, Brazil and their S/A leftist allies (Argentina, Ecuador, Bolivia, Uruguay, Paraguay, Chile) have made huge efforts toward peace and cooperation among S/A and L/A countries, with special emphasis on goals of social justice and democracy. It is the US that is funding fascists and warmongers in L/A.

The US government and the corpo-fascist press need to STFU about Venezuela, and start addressing our own problems, failed policies, vast military expenditures, vast looting of our treasury by war profiteers and banksters, unaccountable war criminals, and horrible injustice including unjust war.

[Tempest]

28. With the U.S. arming Columbia

And Columbia's involvement with the 2002 coup, along with the numerous border crossings by Columbia, Chavez is smart to arm himself against U.S. imperialists.

[twitomy]

32. Ahh, I was waiting for the "impearlist" phrase to pop up sooner

or later...

[Warren Stupidity]

37. "Ahh, I was waiting for the "impearlist" phrase to pop up sooner"

If the foo shits...

Your spellcheck seems to be on freep.

[Nihil]

49. Always a bad sign ...

... if they manage to screw up copy & paste from the preceding post ...
:rofl:

[Pavulon]

44. Which modern weapon system did we sell them?(nt)

[Joe Chi Minh]

40. Thank you for that info. Shame they flaunt their ignorance so pathetically.

[sabrina 1]

56. At least it's something that people can use

to make their lives more comfortable.

What does the US export, other than bombs? Or at least that's how the world now views the US. I would say if there was a global popularity contest based on which country is the most useful to the rest of the world, the US would not win it. Not to mention how we caused the collapse of the global economy and no one has been held accoutable for that.

Yet, here we are worrying about what happens in Venezuela, instead of rounding up the criminals in our country. Maybe it would help to get it done before they get the idea that what they did was okay and worth trying again.

[fascisthunter]

14. is something wrong with buying tanks

be sure to let Congress know

I'm sure Chavez will spend some of that money on, you know, the poor people. People the US walks on and spits upon.

[Warren Stupidity]

15. only if you are not AMURIKAN

and most importantly if you are a swarthy latin type with oil. It is amazing that people living here with our 600B+ military budget and a military that has 7,851 main battle tanks are just aghast that Venezuela would spend 2B/yr on its military and buy a couple dozen tanks.

[twitomy]

21. Yes When it supports the Russian Military-Industrial Complex

At the expense of the poor. Bread not Bullets. But then again, Im sure Chavez will make up for it with a "free cheese" day.

[EFerrari]

26. Venezuela's food security has vastly improved under the Chavez administration.

And the number of the poor has decreased by about half. You'll have to do better than that.

[Tempest]

29. You really should quit while you're ahead

You're spouting rightwing nonsense and outright blatant lies.

[twitomy]

33. Yes the free cheese was a lie, you got me..NT

[Joe Chi Minh]

41. I am deeply moved by your concern, even heart-ache over the plight of the

poor. I expect you are fighting tooth and nail to support Mr Kucinich to change the vicious economic structures of the US that have been the cause of so much destitution to so many people: Americans. All credit to you!

[Nihil]

48. Ah, I see what's bugging you!

> Yes When it supports the Russian Military-Industrial Complex

If only little Hugo had been supporting the American Military-Industrial
Complex with his purchases, you'd have been happy! But no, he *had* to go
to those darn Russkies and work with the Chinese instead ...
:eyes:

[fascisthunter]

50. wow... incredible mind set

[hughee99]

17. So they're going to be drilling new wells in a joint venture?

Won't raise revenue for Venezuela (who could certainly use it) and provide fuel for China (who could also certainly use it). It sounds like a good deal for just about everyone. Good for Chavez...

[Vidar]

19. It's a shame that Russia & China are more trustworthy than the US,

but given our support of coups supporting murderous dictators in Latin America, there is no doubt that Chavez made the right decision.

[Pavulon]

45. Yep, and if he goes off the reservation maybe he will get a dose of dioxin..

that is the kind of trust we should all believe in. Take a look at sudan and see how helpful china has been there. But hey at least it is not evil amerikka.

[Joe Chi Minh]

47. Ah, yes, the Sudan has always been a little patch of Paradise. A little historical perspective

would lend some of your ramblings a little more credibility. But not much.

Do China or Russia rape and sodomise children as part of their empire's panoply of invasion and occupation? I think not. Pornography is a part of the warp and weft of Western culture, particularly that of the US. Not so Communist countries.

[Pavulon]

52. Umm. Are you saying there is no porn in china?

and no child abuse? Same with the collapsed and failed USSR? Maybe north korean communists are better? Sudan has a joint venture with china, darfur comes into the mix in that relationship.

[Joe Chi Minh]

54. Of course there is now. Thanks to the West's capitalist influence.

[proteus_lives]

60. Wow, new levels of stupidity.

:rofl:

[Alamuti Lotus]

53. Yes they do, please reference Chechnya or East Turkestan

Depravity accompanied by greed is unfortunately a universally all-too-human trait.

One thing China and Russia have going for them when doing business in rougher parts of the world is that they do not lecture their business partners, for better or worse (usually worse, but it makes business go a little smoother).

[Joe Chi Minh]

55. Yes, indeed, the dire effects visited on the countries which used to be Communist

and have now been depraved by the West are many and varied, you hapless apologists for iniquitous Anglo-American capitalism.

[Alamuti Lotus]

57. HAHAHAHAHAHAHAHAHAHA

I've been called a great many horrible things (most of them completely true), but I'll be damned -- I've now been called a hapless apologist for iniquitous Anglo-American capitalism. A banner day for sure. What an idiot.

[MellowDem]

58. Just wondering...

Why the "anglo" American capitalism? I believe our capitalism is quite diverse indeed. In fact, I think the term Chinese-American capitalism would be more true, considering how big of a trading partner they are with us.

[Bo]

61. I hope it helps out the Venezuelans

I cannot believe how expensive the place has become, it is a disaster economically down here. >Chavez is soooooooo wonderful.

[grandmaspam]

62. This is Obama's fault

I read that he has a deal with the Chinese to support Hugo Chavez since Castro and Obama are good friends.