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Venezuela and China sign major oil collaboration agreements

22nd July 2014

China has strengthened its position in Latin America with a slew of deals between itself and Venezuela that will see the two nations collaborate on oil projects within the South American nation, as well as increase its oil exports to China

The state visit of Chinese president Xi Jinping to Venezuela saw the signing of 38 new agreements between the two nations on Monday.

China has shown its commitment to the partnership by providing Venezuela with a USD 4bn credit line to be used for projects to boost the country’s economy and infrastructure, in exchange for increased crude and oil product exports to China.

The agreement envisages around 100,000 barrels per day to be exported to China.

One billion dollars will come from China’s EximBank, who will be providing the funds to Venezuela’s state oil company PDVSA to develop its exploration and production activities.

"It's a virtuous (financing) formula which does not create onerous debts," Reuters quoted Venezuelan president Nicolas Maduro as saying. "We've reached the point of no return in a deep relationship with China."

The series of agreements also cover other economy-boosting projects in mining, technology, housing, manufacturing, finance, transportation, infrastructure and agriculture.

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