Oil prices plunge brings Ecuador and Venezuela closer to China

Discussion in 'Americas' started by amoy, Jan 7, 2015.

  1. amoy

    amoy Senior Member Senior Member

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    China grants $5.3 billion credit line to Ecuador | Energy & Oil | Reuters

    Venezuela's Maduro to visit China, OPEC nations amid cash crunch | Reuters

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    The dip in oil price hurts producers big time. However, a silver lining is Latin Americans and Chinese are pulled closer in a long-term perspective. :namaste:

    Warm-hearted Chinese will be rewarded when it gets out of the slump.

    [​IMG]
     
    Last edited: Jan 7, 2015
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  3. Broccoli

    Broccoli Regular Member

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    It's amazing how countries with oil wealth like Russia and Venezuela haven't managed to diversify their economy. Venezuela is not going to get back up because their stupid politics (central planning) holds them down and they don't have have any good leadership.
     
  4. Sylex21

    Sylex21 Regular Member

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    Very cool. Interesting to see nations seek loans in times of need from non western sources.
     
  5. Sambha ka Boss

    Sambha ka Boss Regular Member

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    Can we say the middle East oil dominance has come to an end with newer sources of oil from Fracking. This should be taken as an opportunity to revive our economy and remove fiscal deficit.
     
  6. amoy

    amoy Senior Member Senior Member

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    Once there was news that petrol was cheaper than mineral water per gallon in Venezuela so that even Colombians rushed across the border to buy…:eek: High spendings in social welfare and poverty relief but no productivity upgrade, even in their mainstay oil drilling. Therefore Chavezian "socialism" was unsustainable n doomed.

    On the upside Venezuela has the world's largest oil reserves (?) so Chinese finaciers can eye a fair return in the long run.
     
    Last edited: Jan 7, 2015
  7. amoy

    amoy Senior Member Senior Member

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    Will China Save Venezuela? | The Diplomat

     
  8. Akim

    Akim Defence Professionals Defence Professionals

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    Venezuela army gets first batch of amphibious armoured fighting vehicles
    [​IMG]
    Venezuela army gets first batch of amphibious armoured fighting vehicles VN16. First batch delivery of 6 amphibious armoured fighting vehicles VN16 for the Venezuela Army. Division de Infanteria de Marina General Simon Bolivar was the first Chinese vehicles, six tanks VN16 armed 105-mm guns (this is an export version of the Chinese ZTD-05,), six IFV VN18 (export version of the ZBR-05), and 120 trucks in North Benz 2629 (Chinese license Mercedes Benz NG2629) 120 4×4 6×6 and trucks. Vehicles arrived on board the vessel Chang Hang Hai Ji. Venezuela’s purchase of the VN16 would be the platforms’ first foreign sale. They first appeared in People’s Liberation Army and People’s Liberation Army Navy Marines service in 2006 as the ZTD-05. VN16 is an amphibious infantry fighting vehicle produced by China North Industries Corporation (NORINCO). The vehicle was developed based on ZBD2000 amphibious armoured fighting vehicle. The VN16 integrates all-welded steel armour hull and turret, and protects its crew from small arms fire, 12.7mm rounds and shell splinters. It is also equipped with nuclear, biological and chemical (NBC) protection system. The VN16 infantry fighting vehicle features six double road wheels and three return rollers. The upper part of the suspension can be covered by armour plates. The vehicle has a maximum range of 500km and can negotiate a gradient of 60% and side slope of 30%. It can cross a vertical step of 0.7m and trench of 2m. The vehicle can be launched at sea from amphibious assault ships and sails at high speed over a long distance to shore, while the maximum speed on water is about 45km/h.
    http://defence-blog.com/army/venezu...phibious-armoured-fighting-vehicles-vn16.html
     
  9. amoy

    amoy Senior Member Senior Member

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    Weapons for Oil ~ what a good deal! But the risk of default is also enormous. What if crude price keeps at the low level for a long time, years ahead probably? Meaning Venezuela has to pump more oil to pay off Chinese loans. In their Chavezian welfare state of low efficiency it's highly unsustainable. Thus the Maduro regime is very fragile.

    Maduro: China Signs Off on $5B Loan to Boost Venezuela Oil Output
    by Reuters|Wednesday, September 02, 2015

    CARACAS, Sept 1 (Reuters) - Venezuela and China have signed a deal for a $5 billion loan designed to increase the OPEC country's oil production, Venezuelan President Nicolas Maduro said.

    Maduro, speaking from China in a show broadcast on Venezuelan state television on Tuesday night, said the loan was destined "to increase oil production in a gradual way in coming months," without providing further details.

    A source at Venezuelan state-run oil company PDVSA told Reuters in March that China was set to extend a "special" $5 billion loan that would likely stipulate hiring Chinese companies to boost output in the company's mature oil fields.

    Venezuela has borrowed $50 billion from China through an oil-for-loans agreement created by late socialist leader Hugo Chavez in 2007, which has helped Chinese companies expand into Venezuelan markets amid chronic shortages of consumer goods there.

    That financing has been especially crucial for Caracas since last year's oil market rout, which aggravated the country's severe economic crisis.

    Eulogio del Pino, the oil minister and president of PDVSA , and Finance Minister Rodolfo Marco Torres were among key Venezuelan figures present at the president's "In Contact with Maduro" show, which broadcast this week from Beijing.

    Speaking in front of a huge portrait of Chavez, Maduro also said that Venezuela currently sends around 700,000 barrels-per-day of oil to the Asian giant.

    http://www.rigzone.com/news/oil_gas..._Off_on_5B_Loan_to_Boost_Venezuela_Oil_Output



    ~Tapa talks: Orange is the new black.~
     
  10. DingDong

    DingDong Senior Member Senior Member

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    These countries tried to use their "supplier" position as a blackmail tool, and got a boot up their @$$es. I wonder why these countries tried to repeat a failed experiment, Arabs had tried before and ended up with burnt hands and shattered ego. Russia as weapons supplier tried to milk India, but did not work and instead India decided to reduce dependency on Russia.

    If we look at the kind of governments these country have then we will agree on two facts:
    A. Centralized, Borderline autocratic governments
    B. Egoist Leaders, too proud to be flexible

    It is as if these countries are wearing a special handcuff, more they struggle more the handcuff tightens.
     
  11. amoy

    amoy Senior Member Senior Member

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    I don't agree Venezuela fits into the category of "central planning".

    Or do they have planning?

    If they do they should have fared pretty well now making do with the reserves accumulated from the good times when crude was above 120$ pb .

    ~Tapa talks: Orange is the new black.~
     
  12. Kathryn Ostrow

    Kathryn Ostrow New Member

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    This economic melt down will bring down Venezuela, Nigeria, Russia & will benefit China, India and other populating countries. And China will play the power politics this way and you will see many other countries coming toward the magnet.
     
  13. pmaitra

    pmaitra Moderator Moderator

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