Overview

China Development Bank provides $250 million loan to PDVSA to boost oil production in Orinco Belt

Commitments (Constant USD, 2023)$251,574,074

Commitment Year•2018Country of Activity•VenezuelaDirect Recipient Country of Incorporation•VenezuelaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jul 3, 2018

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The loan helped assist oil production in the Orinco Belt in northern Venezuela. There is no specific area listed as to where the funds went, but the closest regional boundary matching the Orinco Belt is the Llanos Region. General locational information can be found at: https://www.openstreetmap.org/relation/6607902#map=7/6.763/-62.336

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

Pétroleos de Venezuela S.A. (PDVSA)

Collateral providers

State-owned companies

Pétroleos de Venezuela S.A. (PDVSA)

Loan desecription

China Development Bank provides $250 million loan to PDVSA to boost oil production in Orinco Belt

Interest type•Unknown

Collateral

This borrowing was reportedly collateralized against the cash proceeds of future PDVSA oil sales.

Narrative

Full Description

Project narrative

On July 3, 2018, China Development Bank (CDB) and Petroleros de Venezuela S.A. (PDVSA) — a state-owned company for oil and natural gas activities — signed a $250 million loan agreement to boost oil production activities in Orinco Belt. The borrowing terms of the loan are unknown.

Staff comments

1. For the time being, AidData assumes that this loan was collateralized against the proceeds of PDVSA oil sales (since all previous CDB loans to PDVSA are collateralized in this way). 2. This CDB loan is not captured in the China-Latin America Finance Database maintained by Boston University and Inter-American Dialogue. Nor is it included it in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.