China National Petroleum Corp. (CNPC) made significant investments in place of Venezuela’s state-owned oil company Petroleos de Venezuela (PdV), which has retreated from its international commitments following the death of President Hugo Chavez, said an analyst with research and consulting firm GlobalData.
In a move that will diversify the supply of refined products sourced by CNPC for its customers in the Pacific Rim, the company signed significant deals in Costa Rica and Ecuador. Both projects, which include the largest single capital project in Costa Rica, were negotiated primarily by PdV.
Jeffrey Kerr, GlobalData’s managing analyst for Downstream Oil & Gas, said, “Despite PdV being an initial partner and key driving force behind the projects, representatives were largely missing from the signing ceremonies, which suggests that it is scaling back from these investments. CNPC now appears to be stepping in to operate within the open market. It is significantly extending its reach into Latin America, enabling it to continue strengthening its foothold within the region over the coming years.”