"Two revolutions, a single path: dignifying human beings
and the sovereignty of our peoples.”
May 10, 2008
Two Revolutions Follow a Single Path
Venezuela exports 300,000 oil bpd to China. Both countries
created a US $ 6 billion Joint Fund. China will explore in
the Orinoco Oil Belt. A Venezuelan oil refinery will be
built in Chinese territory.
Currently, the Bolivarian Republic of Venezuela sends over
300,000 oil and oil by-products bpd to China within the
framework of the energy agreements endorsed by these two
countries as part of an strategic alliance, said the
Venezuelan president Hugo Chávez last Friday (May 9, 2008),
when the Venezuelan and Chinese governments signed new
President Chávez met with the Chinese Deputy Prime
Minister, Hui Liangyu at he Miraflores Presidential Palace
in order to sign an agreement to start oil exploration and
production in the Orinoco Oil Belt, and to start the
studies in order to build a big refinery in Chinese
territory, which will process up to 400,000 oil pd and
receive Venezuelan oil.
“Fifteen years ago some people said it was impossible to
take Venezuelan oil to China because it was too far and
costs made exchange projects unfeasible. We have destroyed
that Washington myth. We were a colony of the United
States,” he pointed out.
The Venezuelan president stressed that Venezuela has
increased its oil reserves to 130,000 million barrels. Ten
years ago it had 80 and estimations show Venezuela will
have oil certified reserves amounting to 300,000 million
“The Chinese drills have already arrived in Venezuela and
we have started working to build an oil drill factory to
become independent. In a few months we’ll be launching the
first Venezuelan satellite, which we named Simón Bolívar,”
added President Chávez.
The Bolivarian Republic of Venezuela and the People’s
Republic of China started to draw a working map in 1999,
when they defined two strategic axes to build a new
strategic alliance based on energy and food.
The Venezuelan president highlighted the importance of
starting working on these two strategic directions before
the 20th century ended. “Today, the world is rumbled by an
energy and food crisis. We have made independent and joint
decisions in the last nine years. Two revolutions, a single
path: dignifying human beings and the sovereignty of our
Joint Financing Fund Created
The Chinese-Venezuelan Joint Fund will be boosted by a US $
6 billion contribution in order to finance important
energy, agricultural, and transportation development
This Fund was created thanks to a Chinese US $ 4 billon
contribution from loans granted by China’s Development Bank
to Venezuela’s Economic and Social Development Bank, and a
Venezuelan contribution amounting to US $ 2 billon.
The Venezuelan president explained that US $ 4.1 billion
have been already set aside for different projects,
including traditional fishing, fish farming, development of
watering systems, construction and restoration of roads in
agricultural zones and railways, among others.
Thanks to this Binational Fund, both countries have been
developing joint projects. They have invested US $ 40
million to launch an Integral Development Project in the
Guara Island, Monagas state (Venezuela’s northeast), and US
$ 17 million for Sustainable Program for Traditional
Fishing and Fish Farming.
Likewise, they have allocated US $ 156 million for the
Exceptional Plan for the Construction and Maintenance of
Roads in Agricultural Zones and Watering Systems; US $ 362
million for an Agricultural Socialist Project in Maracaibo,
Zulia state (Venezuela’s west), and US $ 149.7 million for
an Agricultural Development Project in a village called Río
Also, they approved US $ 108 million to build 10
universities out of the 28 included in the Aula Mater
Program, and US $ 1 billion for projects in the electricity
field involving thermoelectrical plants and the system’s
In the petrochemical field, both countries approved US $ 4
million to build a propene plant and widen an oil-by
product production plant, and US $ 80 million for the
railway system Encrucijada-Cua.
In addition, they approved US $ 197 million for the Gran
Mariscal de Ayacucho highway, US $ 15 million for the
Acarigua-Turán Center-West Railway System, US $ 250 million
for the Caracas-Tuy Medio railway section, US $ 165 million
for the Puerto Cabello-La Encrucijada railway section, and
US $ 40 million for the San Juan de los Morros-San Fernando
de Apure railway.
The fund also will finance the Venezuelan subway system,
including US $ 100 million for the El Tambor-San Antonio de
los Altos section, US $ 62 million for the Metro de
Valencia’s Section 1.
At this event, other five agreements were endorsed by the
Venezuelan and Chinese representatives, including one to
reduce poverty. These agreements include binational
meetings to discuss strategies and policies, training and
seminars about theories and practices in this field.
Also, the Chinese and Venezuelan Agricultural Ministries
endorsed a memorandum of understanding in order to devise,
evaluate, undertake and follow up programs and projects in
order to boost the development of agricultural cooperation.
Finally, Venezuela and China inked a Macro Agreement in
order to undertake the Project of the Zhuhai Refinery in
the Guandong province, an agreement between Venezuela’s
PDVSA and China’s CNPC to create an oil joint venture to
explore the Junin Bloc 4 of the Orinoco Oil Belt, and a
memorandum of understanding between PDVSA Agrícola S.A. and
Helongjiang Xinliang Grains & Oil Group Co; Ltd in order to
improve and take advantage of the land located in the
Orinoco Oil Belt.