Venezuela to get $10 billion loan from China :)

[C130]

The Reliance refinery in India ,Gujarat can handle the crude of orinoco with ease. A number of shipments from orinoco are bought by Reliance which can handle virtually all kinds of crude oil from super heavy to super light. Also Sinopec is upgrading its refineries for the same/



Like how USA has destroyed Chinese investments in Sudan? Venezuala is safer and the de-dollarisation process is underway.

even if China has the refineries the Venezuelans can't get enough of the heavy oil out of the ground in large of enough quantity. they have been promising for last decade they would be extracting at least 2 million bpd from Orinoco as of this moment.

they need tens of billions if not a hundred billion investment in Orinoco now factor how low oil has dropped it price and how it would cost more to extract from Orinoco and you see it's just not feasible or economical.

hell I want China to invest and buy that oil.


we don't need Venezuela oil anymore

 

[sovcomflot]

even if China has the refineries the Venezuelans can't get enough of the heavy oil out of the ground in large of enough quantity. they have been promising for last decade they would be extracting at least 2 million bpd from Orinoco as of this moment.

they need tens of billions if not a hundred billion investment in Orinoco now factor how low oil has dropped it price and how it would cost more to extract from Orinoco and you see it's just not feasible or economical.

hell I want China to invest and buy that oil.


we don't need Venezuela oil anymore

Good. But we and China are willing to be customers for the same.And soon the shale oil bubble will burst as production cost is 45-50$/bbl.

And venezualan orinoco oil production cost is 4$/bbl.

It reminded me that I never posted a link to this cable from the Wikileaks collection, which is one of the best ones in there. It gives us the clearest answer yet on production costs in the Orinoco. After all, for years, PDVSA President Rafael Ramirez has said the cost is about $4, infuriating outside experts who said that the cost had to be much higher.

Cable reference id: #10CARACAS225
How profitable is Orinoco crude? | Setty's notebook

So ya suckers.

 

[C130]

The Reliance refinery in India ,Gujarat can handle the crude of orinoco with ease. A number of shipments from orinoco are bought by Reliance which can handle virtually all kinds of crude oil from super heavy to super light. Also Sinopec is upgrading its refineries for the same/



Like how USA has destroyed Chinese investments in Sudan? Venezuala is safer and the de-dollarisation process is underway.

Sudan? and de-dollarisation really??

last time I checked their own currency is crap and the black market is rampant for U.S dollars.

Why Venezuela is the world’s worst performing economy, in three charts – Quartz

 

[MarkusS]

Venezuela is a failed state and collapsing. But 10 billion isn't much. So i guess its experimental for china.

 

[C130]

Good. But we and China are willing to be customers for the same.

good. just saying needs a lot of investment and Venezuela isn't the place to invest ATM

you want that oil please take it. get it while it's cheap. Venezuelans are the ones suffering not us major oil buyers.

 

[gambit]

The Reliance refinery in India ,Gujarat can handle the crude of orinoco with ease. A number of shipments from orinoco are bought by Reliance which can handle virtually all kinds of crude oil from super heavy to super light. Also Sinopec is upgrading its refineries for the same/

Why go there when you can sell to US and let US refine Venezuelan crude ? I do not presume to be an expert in oil issues, but...

The Oil Drum | Tech Talk - Venezuela, heavy crudes, API gravity and refinery gains

...heavy Venezuelan crude that, until now, has largely been sent to specialized refineries in the United States that are designed to handle it.

...diplomatic leaks known as the Wikileaks saga has revealed cables that suggest that China was getting some of this oil for $5 a barrel, and then selling it for more on the open market, including possibly to the USA.

Is China being a friend to Venezuela ? That is a laugh and let me laugh as example...

No...There is no sympathy for Venezuela for having to deal with US here. China was/is gouging Venezuela. This is strictly business. Given how US crude -- from fracking -- is considered desirable: light sweet crude, why would anyone want to deal with Venezuela except when Venezuela is in an inferior position ? To be comparably profitable in Orinoco crude would require a technological leap in the same vein as 'fracking' to processing 'sour' crude like from Venezuela. Or deal with Venezuela to the extent that Venezuela would be put in the poor house.

 

[sovcomflot]

Why go there when you can sell to US and let US refine Venezuelan crude ? I do not presume to be an expert in oil issues, but...

The Oil Drum | Tech Talk - Venezuela, heavy crudes, API gravity and refinery gains

Is China being a friend to Venezuela ? That is a laugh and let me laugh as example...

No...There is no sympathy for Venezuela for having to deal with US here. China was/is gouging Venezuela. This is strictly business. Given how US crude -- from fracking -- is considered desirable: light sweet crude, why would anyone want to deal with Venezuela except when Venezuela is in an inferior position ? To be comparably profitable in Orinoco crude would require a technological leap in the same vein as 'fracking' to processing 'sour' crude like from Venezuela. Or deal with Venezuela to the extent that Venezuela would be put in the poor house.

Considering that Orinoco production cost is 4$ and US shale oil production cost is 45-60$/bbl, lol.

 

[C130]

Considering that Orinoco production cost is 4$ and US shale oil production cost is 45-60$/bbl, lol.

like to know where you came up with that number, but it seems you kinda right

At the Wellhead: Venezuela’s upgraders are maxed out to handle its heavy oil « The Barrel Blog

The special handling also has boosted the cost of production in the Belt to an average $10/barrel, plus an upgrading cost of $30/b, still a very competitive cost level compared with other global producers.

to get it out of the ground is $10 and to upgrade it is $30 that would be $40 dollars right???

but it's also true it the break even cost to produce shale is around $40 to high as $80.

 

[sovcomflot]

like to know where you came up with that number, but it seems you kinda right

At the Wellhead: Venezuela’s upgraders are maxed out to handle its heavy oil « The Barrel Blog



to get it out of the grade is $10 and up upgrade it is $30 that would be $40 dollars right???

but it's also true it the break even cost to produce shale is around $40 to high as $80.

Except that the BP corporate head has stated that production cost for orinoco extra heavy is 4$ . Lol.

It reminded me that I never posted a link to this cable from the Wikileaks collection, which is one of the best ones in there. It gives us the clearest answer yet on production costs in the Orinoco. After all, for years, PDVSA President Rafael Ramirez has said the cost is about $4, infuriating outside experts who said that the cost had to be much higher. Here is Joe Perez, president of BP in Colombia and Venezuela, early in 2010, saying:

current Faja productions costs, from well bore to tanker, amount to $4/barrel.

 

[C130]

Except that the BP corporate head has stated that production cost for orinoco extra heavy is 4$ . Lol.

well obviously that's not true. since you have to upgrade Orinoco oil with special upgraders and it's not cheap.

Venezuela is probably getting it's non-heavy conventional oil out of the ground around that price, lol

 

[sovcomflot]

well obviously that's not true. since you have to upgrade Orinoco oil with special upgraders and it's not cheap.

Venezuela is probably getting it's non-heavy conventional oil out of the ground around that price, lol

Don't worry ,Reliance super refinery in Gujarat does in cheap. And lol, considering that Corporate head of BP has stated the production cost .

 

[gambit]

Considering that Orinoco production cost is 4$ and US shale oil production cost is 45-60$/bbl, lol.

Except...

News - Argus Media

But PdV's joint venture partners in the oil belt and its international clients "hate using naphtha…no one in Venezuela or the refineries abroad wants the stuff," a foreign oil executive in Caracas said.

"Orinoco extra-heavy crude oil diluted with naphtha is difficult to handle and process. It gums up tanker holds and gums up distillates processing units," the oil executives said.

It is cheap because Venezuela made it cheap, so enjoy it while you can. The reality is that Orinoco crude requires extra steps in refining and there are limited use for Orinoco crude and that contribute to its low cost. Not all crude are the same and Venezuela is not getting rich by selling to those who would pressure Venezuela to keep prices low because of the oil's limited uses.

 

[Echo_419]

Well our currency reserves are currently around $4 trillion, as much as the rest of the world combined.

And Venezuela has the largest oil reserves on Earth. They can always pay us back with oil, and they have plenty.

I have heard that venues élan crude is of bad quality
How true is that

 

[opruh]

Good to see China being generous, truly a responsible country.

 

[gomerker23]

Venezuela should use the money to produce basic consumer