PetroChina said on Tuesday it will sign a framework deal with Venezuela this week to jointly explore for orimulsion fuel in the Latin American nation and build a new refinery to process the heavy oil in China.
This follows more than a year of negotiations as the Chinese oil major sought compensation after Caracas forfeited a long-term supply pact of the heavy boiler fuel. PetroChina’s vice president, Shen Diancheng, said the firm and state-run PDVSA now plan to build a 400,000 barrel-per-day plant to process orimulsion in southern Guangdong province. He did not give further details on the scale of the investment, or the equity split. “We want to cooperate with foreign firms in both upstream and downstream business to take advantage of our respective strength and secure steady oil supplies,” Shen told an industry seminar in Beijing. He also said the firm was in talks with Qatar to build a refining and petrochemical complex in eastern Zhejiang province, without giving details. (Reuters)