China to sign 20 billion US dollar loan for oil exchange agreement

China and Venezuela signed the "Junin 4" oil cooperation project and long-term financing cooperation and other important agreements in Caracas April 17, local time. China will provide the Commission with a 10-year large financing loan under the framework Agreement on long-term financing cooperation. The state petroleum Company and PetroChina signed the contract of oil purchase and sale as the repayment guarantee.　　The two sides will set up a joint venture to be responsible for the implementation of the Junin 4 project. It is understood that the "Junin 4" Oil cooperation project is located in the Department of Connaught Petrochemical Belt, block area of 325 square kilometers, recoverable reserves of 8.7 billion barrels, can be built with an annual output of 20 million tons of production capacity. The two sides will set up joint ventures to be responsible for the implementation of the "Junin 4" project. It is expected that 2.9 billion barrels of excess crude oil will be produced during the 25 contract period.　　PetroChina Group did not disclose the composition of the joint venture company stock ratio.　　Hugo Hugo Chavez, Venezuela's president, said in a television address in Friday that China had promised to provide Venezuela with 20 billion of billions of dollars in loans and plans to set up a joint venture with local state-owned companies in return for a sufficient supply of crude oil.　　Last year China and Russia also signed a 25 billion dollar oil exchange loan agreement, "Oil for loans" has become China's foreign energy cooperation is an important way. In this respect, domestic energy expert Han Xuegong told reporters that the so-called "oil for loans" is the international oil credit cooperation, is an important form of international oil cooperation. In particular, in the current oil resource countries for resource constraints more and more tight, the former production into the form of contract is gradually reduced. In the case of less political risk, such cooperation on International petroleum credit is a more common form, with intergovernmental agreements in general and implementation guaranteed.