Venezuela, China sign deals worth $10 bn

Venezuela and China have signed a raft of new agreements worth some $10 billion, with nearly half earmarked for investment in a joint oil venture, according to Venezuelan officials.

The funds will go to "the strengthening and expansion of oil exploration in the Orinoco Belt, for agricultural development, construction, housing, and industrial development," Venezuelan Vice President Elias Jaua said on Monday.

About $4 billion will go towards financing increased production by a Chinese-Venezuelan oil company, Sinovensa, which operates in the Orinoco Heavy Oil Belt, site of the world's largest known reserves of heavy crude.

Oil Minister Rafael Ramirez said the agreements, signed with a visiting Chinese delegation, brings the value of total bilateral cooperation to $38 billion, including a $20 billion credit extended to Venezuela in recent years.

China has made major inroads in Latin America in recent years and the energy-hungry Asian giant is particularly interested in Venezuela's vast oil reserves.

Venezuela currently exports some 400,000 barrels of oil a year to China.