CNPC Makes Second Bonus Payment Toward Developing Oil Block

China National Petroleum Corp., the country’s largest energy company, made a second payment toward a $900 million signing bonus it must make to develop the Junin 4 oil block in Venezuela, Petroleos de Venezuela SA said today.

It paid $180 million, PDVSA said. The bonus will be paid in several installments and is in addition to capital needed to produce and refine crude at the Orinoco Belt field.

State-run PDVSA and CNPC signed an accord in April 2010 to invest $16.3 billion in a joint venture that will produce 400,000 barrels a day in 2016. CNPC will be a minority partner.

Also today, CNPC and PDVSA agreed to sign a contract with China Huanqiu Contracting & Engineering Corp. and Technip SA to build an upgrader unit in the Orinoco Belt project that can process 200,000 barrels a day, PDVSA said.

PDVSA also said that CNPC is interested in working on the Junin 10 block in the Orinoco Belt.

To contact the reporter on this story: Corina Pons in Caracas at jorozco8@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.

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