Hold the IMF talks! El Universal is reporting that PDVSA and Sinopec – a massive Chinese state-owned oil company – have signed a $14 billion agreement to develop the the huge Junin 1 block in the Western part of the Orinoco Heavy Oil Belt. The area could be producing 200,000 barrels a day when all is said and done.
As usual, no details are available. We don’t know what terms the Chinese obtained, what guarantees they obtained that the money would actually be spent on developing the area (rather than bailing out the government from its BoP pickle), or how much detail of terms and conditions has been agreed.
Still, it looks like a big big deal.