OREANDA-NEWS. January 16, 2013. New cooperation instruments in the areas of oil, mining, energy, electricity, financing and infrastructure were signed in Beijing after the 11th Meeting of the China-Venezuela High-Level Joint Committee (Comision Mixta de Alto Nivel – CMAN). Rafael Ramirez, the People’s Minister of Petroleum and Mining and president of Petroleos de Venezuela, S.A. – PDVSA, participated in this event.

“The increase of the exchange amount between Venezuela and China since 2001 (year when CMAN was created) has been more than exponential”, said Jorge Giordani, Minister of People’s Power for Planning and Finances and chief of the Venezuelan delegation at the event.

In 2001 bilateral trade was 518 million dollars while in September 2012 an amount close to 20 billion dollars was recorded. By the end of the year the amount could be close to 23 billion dollars.

“We believe that we will break a new record in bilateral commerce. China continues to strengthen its position as Venezuela’s second commercial partner, while Venezuela strengthens its position as China’s fourth commercial partner in Latin America”, said vice minister Zhang Ping, president of the commission on behalf of China.

The chief of the host delegation indicated that we are witnessing a new leap in the commercial and economic cooperation between the two countries and stressed the important growth of bilateral trade in a context of deceleration of global economic growth.

After assessing the needs and opportunities of both nations in oil matters, the conclusion is the same: “the People’s Republic of China, the second largest economy in the world, and the Bolivarian Republic of Venezuela, the number one certified oil reserve worldwide, are two economies that complement each other perfectly”, stated minister Ramirez.

From 2005 to date, the supply of oil and Venezuelan products to the People’s Republic of China has increased from 45 thousand barrels per day (Mbbls/d) in 2005 to 518 Mbbls/d currently.

We have agreements with CNPC, one of the biggest oil companies in the world to produce jointly in our country one million 100 Mbbls/d, basically in the Faja Petrolifera del Orinoco. This involves investments of near 20 billion dollars in our country, explained Ramirez.

“We reviewed all the projects, infrastructure developments and industrial condominiums; additionally, we signed off on the engineering for the development of 900 megawatts of electricity out of petroleum coke and carbon, we agreed on new areas for prospecting for oil, like Junin 10 South and on the development of existent fields, as it is the case with the company Petrosinovensa”, stated the head of Petroleum and Mining.

“We are now in a phase of building and increasing our industrial capacity. We have signed agreements with Chinese companies like CITIC, agreements not only to help us build housing but also to help us industrialize housing construction in our country. It is about setting up factories in Venezuela. China has cutting-edge technology, the best sample are our two satellites: Simon Bolivar and Francisco de Miranda, launched and built here, in the People’s Republic of China, explained minister Ramirez.

A technological transfer takes place which is very important because we are committed to strengthening Socialism and overcome the rentier oil model, said Ramirez.

“The cooperation between China and Venezuela is an example of relation among developing countries, between nations of the South. The cooperation in the oil supply has given us a great financial leverage of more than 36 billion dollars to develop our entire infrastructure, railways, roads, education, everything we need to build a social base and take a leap forward in the government cycle”, said PDVSA’s president.