China and Venezuela have signed a series of deals that will see the pair co-operate on the development of oil projects, with crude also being shipped from the South American oil powerhouse.
The 38 new agreements were signed between Chinese President Xi Jinping and Venezuelan counterpart Nicolas Maduro in Caracas on Monday.
China is to extend a $4 billion credit line to Venezuela, to be put into a joint fund for infrastructure and economic development in the South American country, in return for crude and oil products. The deal will see around 100,000 barrels per day of oil go to China.
China’s EximBank will also lend $1 billion to state oil company PDVSA, while Sinosure (the China Export Credit Insurance Corporation) and PDVSA will work together on the development of oil projects.
"It's a virtuous (financing) formula which does not create onerous debts," Reuters quoted Maduro as saying. "We've reached the point of no return in a deep relationship with China."
The raft of agreements cover not only the oil industry, but other mining, technology, housing, manufacturing, finance, transportation, infrastructure and agriculture.