- Venezuelan president Hugo Chavez has offered China wide-ranging
access to the country's oil reserves.
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- The offer, made as part of a trade deal between the two
countries, will allow China to operate oil fields in Venezuela and invest
in new refineries.
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- Venezuela has also offered to supply 120,000 barrels
of fuel oil a month to China.
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- Venezuela - the world's fifth largest oil exporter -
sells about 60% of its output to the United States.
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- Mr Chavez's administration, which has a strained relationship
with the US, is trying to diversify sales to reduce its dependence on its
largest export market.
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- Thirsty for oil
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- China's quick-growing economy's need for oil has contributed
to record-high oil prices this year, along with political unrest in the
Middle East and supply bottlenecks. Oil prices are finishing the year roughly
30% higher than they were in January 2004.
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- In 2004, according to forecasts from the Ministry of
Commerce, China's oil imports will be 110m tons, up 21% on the previous
year.
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- China has been a net importer of oil since the mid 1990's
with more than a third of the oil and gas it consumes coming from abroad.
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- A lack of sufficient domestic production and the need
to lessen its dependence on imports from the Middle East has meant that
China is looking to invest in other potential markets such as Latin America.
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- Mr Chavez, who is visiting China, said his country would
put its many of its oil facilities at the disposal of China.
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- Chinese firms would be allowed to operate 15 mature oil
fields in the east of Venezuela, which could produce more than one billion
barrels, he confirmed.
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- The two countries will also continue a joint venture
agreement to produce stocks of the boiler fuel orimulsion.
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- Mr Chavez has also invited Chinese firms to bid for gas
exploration contracts which his government will offer next year in the
western Gulf of Venezuela.
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- The two countries also signed a number of other agreements
covering other industries including mining. Story from BBC NEWS:
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- © BBC MMIV
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- http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4123465.stm
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