* Chavez to sign $4 bln loan deal with China this week
* Venezuela sends 410,000 bpd to pay for Chinese credits
(Adds details, background)
CARACAS, Nov 22 Oil companies formed as joint
ventures between Venezuela and China will produce 1.1 million
barrels per day (bpd) by 2014, up from 112,000 bpd at present,
Venezuelan Oil Minister Rafael Ramirez said on Tuesday.
Ramirez said that Venezuela and China have agreed on the
terms for a new Chinese loan worth $4 billion for oil projects
and that the agreement will be signed on Wednesday by socialist
President Hugo Chavez.
"We're going to get $300 million to start with right now,
which would cover the plan to increase output," Ramirez said.
The joint venture projects between Venezuela's state-run
company PDVSA and China's National Petroleum Corporation
currently produce 112,000 bpd and that Venezuela is sending
410,000 bpd to China to pay for previous loans, he said.
The joint venture projects between the two companies are
worth some $30 billion.
Finance Minister Jorge Giordani last week said the South
American OPEC member's arrangement with China was unprecedented
in Latin America. An initial $4 billion loan from 2007 was
already paid and another would be canceled early in 2012, he
Officials say the Chinese money goes to social projects and
infrastructure, though opposition politicians and some
economists complain of a lack of transparency in the accounts.
"It's a perfectly transparent agreement by which we pay
with oil shipments ... that are sold at market prices," Ramirez
In addition to the three $4 billion tranches, China's
government lender also gave Venezuela a separate $20 billion
credit line in 2010.
(Reporting by Marianna Parraga; Writing by Eduardo Garcia;
editing by Bob Burgdorfer)