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Overview

CDB provides $2.2 billion loan for Dehydration and Desalination Plant and Expansion of Jose Processing Plant in Anzoátegui

Commitments (Constant USD, 2023)$2,399,587,460
Commitment Year•2016Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 18, 2016

Geospatial footprint

Map overview

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More detailed locational information can be found at https://www.google.com/maps/place/Industrial+and+Petrochemical+Complex+Jos%C3%A9+Antonio+Anzo%C3%A1tegui/@10.0710074,-64.9344833,12z/data=!4m5!3m4!1s0x8c2d10e0586a66fb:0x3aa938979ab6c4e9!8m2!3d10.0710074!4d-64.8644455 and https://www.openstreetmap.org/way/265071557#map=14/10.0692/-64.8644 and https://www.google.com/maps/place/Planta+desalinizadora/@10.1618112,-64.7046105,15z/data=!4m5!3m4!1s0x0:0x91a4323364ee7331!8m2!3d10.1617849!4d-64.7046445 and https://www.openstreetmap.org/way/1121922829

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Implementing agencies

State-owned companies

  • China National Petroleum Corporation (CNPC)
  • Pétroleos de Venezuela S.A. (PDVSA)

Collateral providers

State-owned companies

  • Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

CDB provides $2.2 billion loan for Dehydration and Desalination Plant and Expansion of Jose Processing Plant in Anzoátegui

Interest type•Unknown

Collateral

The borrowing was collateralized with PDVSA income from oil export sales to one or more Chinese buyers (importers)

Narrative

Full Description

Project narrative

On November 18, 2016, China Development Bank (CDB) issued a $2.2 billion loan to Pétroleos de Venezuela S.A. (PDVSA) for several major projects, including (1) a Dehydration and Desalination Plant in Anzoátegui and (2) Expansion of Jose Processing Plant in Anzoátegui. The borrowing terms of the loan are unknown. The loan was secured by (i.e. collateralized against) PDVSA income from oil sales to China. Several sources also suggest that the borrower was allowed to use the loan proceeds to increase oil exports to China through three CNPC-PDVSA joint ventures (Petrourica, Petrozumano, and Sinovensa). The desalination plant in Anzoátegui was formally inaugurated on November 23, 2017. The Jose Processing Plant was supposed to increase production to at least 330,000 bpd of extra heavy crude oil by 2017.

Staff comments

1. The desalination plant and the refinery expansion are both included in a single record rather than in separate records because similar facilities that were built in a different part of the country were designed with each other in mind: in addition to providing fresh water, the desalination plants also provide steam to power the refinery. 2. Multiple sources suggest that PDVSA may have on-lent the proceeds of the loan to one or more joint ventures between CNPC and PDVSA, including Petrozumano, S.A., Petrourica S.A, and Petrolera Sinovensa, S.A. This issue warrants further investigation. 3. Petrozumano, S.A. is a joint venture formed by PDVSA subsidiary CVP (60% equity stake) and CNPC Venezuela B.V. (40% equity stake) to conduct exploration and production activities of light-medium crude in the Freites and Aguasay municipalities of Anzoátegui and Monagas State, respectively. Petrolera Sinovensa, S.A. (Petrosinovensa or Sinovensa) is a joint venture of CVP (60% ownership stake) and CNPC Venezuela B.V. (40% ownership stake) that was developed to construct and develop oil field facilities (the so-called Morichal Operational Complex) to extract oil from the Carabobo block within the Morichal oil field in the Orinoco Oil Belt. Petrourica, S.A. is a joint venture between CNPC (40% ownership stake) and PDVSA (60% ownership stake) that was created to implement the Junín 4 project in the Orinoco Belt. 4. Some sources suggest that the borrower may have also used the loan proceeds to support Sinovensa’s Alternate Steam Injection Pilot Project. This issue warrants further investigation. 5. Jose Mixing Plant (abbreviated PMJ) is part of the broader Jose Antonio Anzoategui Industrial Complex (abbreviated CIJAA)