China has agreed a long-term financing package with Venezuela worth US$20 billion that will help develop various major projects in the South American country, Reuters reported. Speaking at the signing ceremony in Caracas, Venezuelan President Hugo Chavez said the loan was in addition to an existing US$12 billion joint investment fund into which Beijing deposits money in return for forward sales of oil. China is involved in Venezuela’s oil, electricity, food, construction and technology sectors. Another six accords covering electricity and oil projects were signed at the ceremony, including the ratification of a joint venture to develop oil assets in the Orinoco belt. Around US$16 billion is required over three years to develop the Junin 4 block, which is expected to produce more than 400,000 barrels per day.
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