PDVSA, CNPC to Produce 800,000b/d

Joint ventures formed by Venezuela's state oil company PDVSA and Chinese counterpart CNPC will produce 800,000b/d, Venezuelan President Hugo Chávez announced in a statement.

Venezuela will also increase its exports to China to 1Mb/d from roughly 300,000b/d today, he said.

The production increases will result from the formation of JVs Petrosinovensa and Petrosumano for the processing of heavy crude as well as new projects on the Junín 4 and Carabobo blocks in the Orinoco heavy crude belt, according to the statement.

Three refineries are slated to be constructed in China to process the Venezuelan crude and a JV shipping company will be formed to transport the crude.

CNPC is scheduled to start supplying Venezuela with drilling rigs at the beginning of October.

A total of 13 rigs - one every two months - will be delivered under a deal signed with CNPC.

Venezuela's total oil production in 2006 stood at 3.25Mb/d, according to recent financial data released by PDVSA.

PDVSA wants to increase production to 5.8Mb/d by 2012 under the company's Plan Siembra Petrolera goal.

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