China, Venezuela: Cutting Deals on Oil

Chinese energy company PetroChina, a subsidiary of China National Petroleum Corp., announced May 6 it will sign a deal with Venezuelan oil company Petroleos de Venezuela to build a 400,000 barrels per day refinery in China's Guangdong province. The deal allows Venezuelan President Hugo Chavez to increase political and economic ties to China, but undervalues the oil it will export and puts pressure on an already overburdened Petroleos de Venezuela.