$5-billion loan to boost Venezuela oil output

Venezuela

BEIJING, September 3, 2015 – Venezuela has secured a loan from China worth $5 billion to aid the country’s oil industry.

President Nicolas Maduro, speaking in Beijing during a tour to promote trade between the two countries, said the revenue earned from oil exports would be used to pay the loan back. Oil makes up 95 percent of Venezuela’s exports earnings.

Venezuela produces 2.5 million barrels of oil per day (bopd), and sends about 700,000 bopd of those to China. President Maduro announced that he hoped to increase exports to China to 1 million bopd in the near future.

China has become Venezuela’s strongest creditor, extending the South American country a total of $46 billion over the past five years, mostly to further develop the country’s oilfields. The loans have expanded China’s opportunities to make business connections – trade between China and Latin America was estimated at $240 billion in 2014 alone, according to the Chinese government.

“We have forged a true co-operation partnership with the Chinese government as well as with many companies that have allowed us to develop in numerous sectors,” President Maduro was reported as saying.
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