CARACAS, Venezuela (AP) — Venezuela's government says the state oil company has been given approval to sell up to $6 billion in bonds to raise money to be used in currency trading.

Petroleos de Venezuela SA has periodically sold bonds both to raise funds for needed projects and to make dollars available in the tightly controlled local currency market.

President Hugo Chavez's government maintains strict controls on currency exchanges. It sets a fixed rate — currently 4.3 bolivars to the dollar — although it also allows bond transactions through a state-controlled market in which the rate is about 5.3 to the dollar.

The plan to sell oil company bonds was announced Friday in the Official Gazette. It's unclear how soon sales might begin.

Williams announces PDVSA sponsorship

Saturday 15th January 2011, 02:03

The Williams team has announced a long-term sponsorship deal with the Venezuelan petroleum giant, PDVSA.

The deal was revealed by the country's president, Mr Hugo Chavez who was in attendance as Venezuelan born Pastor Maldonado demoed the FW32 on the streets of the country's capital, Caracus.

The deal will see the world's fifth largest oil exporter's logo's adorned on the new FW33 to be launched in Valencia and the team overalls of Maldonado and Rubens Barrichello.

The Grove based outfit also announced that it would work closely with PDVSA and the Fundación Pastor Maldonado in the areas of education, road safety and energy efficiency for the wider benefit of the Venezuelan society.

Of the new partnership, PDVSA’s Director of Corporate Affairs, Mr Julio Gonzalez, commented, "PDVSA is extremely proud to support this partnership and Pastor Maldonado on behalf of our fellow countrymen.

"Pastor perfectly epitomises our country’s passion and discipline, as well as our determination to overcome huge social imbalances. However, we are looking towards building a new, more harmonious and fairer society and become an example to the world. Pastor will fly our flag this year and carry the hopes of an entire country in this new chapter of his career."

Frank Williams, Team Principal of the AT&T Williams team, added, "We are very grateful to PDVSA for having joined our team. They are a substantial partner and can make a meaningful difference to our fighting ability. We are honoured that our new partnership was announced in Venezuela today while showing Pastor’s fans the power of a Formula One car.

"We are especially honoured that President Chavez himself witnessed the demonstration. On behalf of the team, we very much look forward to working with PDVSA and Venezuela and giving them some good results on track."

This deal comes at a time when the Williams outfit has lost several sponsors in a single year, including Phillips, The Royal Bank of Scotland (RBS), AirAsia and McGregor.