Venezuelan state-owned oil company PDVSA received a $1.5 billion credit line from the China Development Bank [CHDB.UL] to help build a heavy-oil refinery in Brazil, the Globo daily newspaper reported.
PDVSA arranged the credit to help pay for its planned 40 percent stake in the 26-billion-real ($14 billion) 230,000 barrel-a-day Abreu e Lima refinery near Recife, Brazil, the paper said, citing Rafael Ramirez, Venezuela's Petroleum and Mines minister.
The refinery on Brazil's north-east coast is already under construction by Brazil's state-controlled oil company Petrobras.
More than five years ago, Petrobras agreed to build the project with PDVSA as part of a high-profile co-operation gesture between Venezuela's President Hugo Chavez and former Brazilian President Luiz Inacio Lula da Silva.
Under the agreement, Petrobras will own 60 percent of Abreu e Lima.
Only about 35 percent complete, the refinery was originally expected to start production in 2010 and reach full capacity earlier this year. The estimated $4.3 billion price for the refinery has more than tripled since 2008.
It is now expected to start output in 2013, according to Petrobras.
PDVSA asked on Wednesday for an additional 60 days to provide Brazil's state-controlled development bank BNDES with loan guarantees so it can receive additional refinery financing from Brazil, Globo said. PDVSA has yet to put any money into the project, though Chavez has criticised its delay.
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