Venezuela will get a $20 billion loan from China, which will form a joint venture with a state company to pump crude oil from an Orinoco Belt bloc, Bloomberg reports. Venezuela in return will fulfill China’s energy requirements.
State-oil company, PdVSA and China National Petroleum have signed a joint-venture agreement that will require a $20 billion investment to pump and refine heavy crude oil at the Junin 4 block. PdVSA will own a 60 percent stake in the block and the Chinese company will have to pay the Venezuelan government $1 billion to access the reserves.
