BEIJING, Aug. 29 -- China National Petroleum Corp. (CNPC), parent of PetroChina, the country's largest oil company, has signed a preliminary accord to form a joint venture with Petroleos de Venezuela to develop and manage oil fields in Venezuela.

    The two companies would develop and operate Venezuela¡¯s Zumano fields in the eastern part of the country, state-run Petroleos de Venezuela said on its Web site. Zumano has proven reserves of about 400 million barrels of light oil and 4 trillion cubic feet of natural gas.

    A Petroleos de Venezuela spokesman said the venture would be the first exploration and production project under the country's new hydrocarbons law, which stipulates majority control of such ventures by the Venezuelan company.

    Petroleos de Venezuela offered CNPC the Zumano fields in January, which are now producing about 25,000 barrels of oil a day.

    ¡°We want China to participate as an investor, as well as a partner¡± in oil-development projects, Rafael Ramirez, Petroleos de Venezuela¡¯s president and Venezuela¡¯s oil minister, said in Beijing as he concluded a visit to China.

    Venezuela plans to spend US$56 billion through 2012 to double oil production to 5.1 million barrels a day from about 2.6 million barrels currently.

    The two companies were also studying a possible refinery project in China, Petroleos de Venezuela said. China may also finance infrastructure projects in the South American country, the company said.

    Venezuelan President Hugo Chavez is seeking increased energy cooperation with China, the world's second-largest oil importer, to reduce the South American country's dependence on the U.S. market, the world¡¯s largest.

    Venezuela said earlier it expected its oil exports to China to soar to 300,000 barrels a day by 2012 from the current level of 68,800 barrels.Enditem

(Source: Shenzhen Daily/Agencies)