Japan to make Venezuelan oil and gas investment
In a visit to Tokyo, Venezuelan president Hugo Chavez announced plans for an oil and gas investment deal with Japan comprising of twelve petroleum projects. The total value of the deal is estimated to be above $33 billion. Chavez’s statement came on the heels of a meeting with Japan’s Gas and Metals Corporation (JOGMEC), a state-backed firm. Japan has been looking to find new sources for energy because it currently relies on the Middle East for 90 percent of its imported crude oil.
On the agreement, Chavez said, “Japan needs oil. Venezuela wants to diversity its market. Japan is ideal for us.”
‘’Japan is one of the richest nations in the world, while Venezuela belongs to the third world, But the we are trying to create a role model of such friendly relations built upon mutual respect for equal rights,” he added. “Friendly relations between Japan and Venezuela symbolizes independent nations that have free governments, which means we can make our own independent decisions.”
The signed agreement between Venezuela and Japan covers five years of joint development in Venezuela’s Orinoco oil basin, natural gas production and processing, and liquefied natural gas projects.
Through this agreement, it seems Venezuela is looking to move past its current over-reliance on the 1.5 million barrels of crude oil it exports to the United States. For its part, Japan seems highly motivated to diversify the energy suppliers on which the world’s second largest economy depends.
During his Tokyo announcement Chavez referenced President Obama. “I am ready to hold out my hand (to Obama) to invite him to our side that cherishes the lives of mankind,” he said.
Chavez is on an informal tour of the East. Before his Tokyo meeting he visited Qatar and Iran and moved on to China hoping for another oil and gas investment deal. Chavez said the possible agreement with China would be worth $4 billion.
Sources for this post include AFP and Monsters & Critics.
Published Friday, April 10th, 2009 at 6:23 am and filed under Industry News.