2010-07-30 11:53

China will help Venezuela build three 300 megawatt (mW) electricity generating plants in return for oil deliveries under a long-term $20 billion financing deal, the Latin American OPEC nation said on Thursday.

Three months ago, Beijing said the China Development Bank had signed a "framework financing agreement" worth about $20 billion with Caracas, half to be paid in dollars and half in yuan, but gave few other details.

The Venezuelan government said 19 development projects had been agreed during bilateral talks in its capital on Thursday, including constructing the three power stations.

The Andean nation suffered severe electricity shortages during a drought this year that slashed hydropower production and led to power rationing in much of the country.

Venezuela's President Hugo Chavez says he wants to boost oil sales to Beijing and diversify away from the country's top customer, the United States.

Chinese energy companies are involved in developing the Latin American country's massive hydrocarbon reserves. In February, the China National Petroleum Company was awarded a stake in the Junin 4 block of its vast Orinoco extra heavy crude belt, which is seen as one of the biggest in the world.