Venezuela said it would tap $2.2 billion from a Chinese credit line to boost oil output at joint ventures with China National Petroleum Corp, in a boost for the South American country's struggling oil industry and a show of unity with a key ally.
CNPC, China's largest state energy group, and Venezuela's state oil company PDVSA will seek to boost production in the OPEC country by around 277,000 barrels per day, President Nicolas Maduro said in a televised address. Funds will come from a credit line of up to $9 billion with China, Maduro said after a meeting with CNPC in Caracas on Thursday.
The agreement will be a boon to Venezuela's oil industry, which has seen its production tumble this year amid a steep recession. It is also welcome public backing for Maduro from a strategic ally amid a political and economic crisis. "Many thanks for all the support you have given Venezuela in 2014, 2015, and especially 2016," Maduro said in a televised speech. "Our older sister China has not left Venezuela alone in moments of difficulty."