CHINA has agreed a $5 billion (£3.3bn) investment loan in the Venezuela oil industry, President Nicolas Maduro said on Tuesday night.

Mr Maduro, on a state visit to China, announced the deal in a special edition of his weekly television programme live from the Venezuelan embassy in Beijing.

“A loan worth $5bn has been signed with China in order to increase oil production progressively during the next months,” he said, adding that it would be paid back in oil shipments.

Venezuela currently produces 2.8 million barrels of crude oil a day and sells 700,000 to China.

Mr Maduro said that exports to China would soon increase to about one million barrels a day.

China is Venezuela’s largest creditor and, along with Russia, a strategic ally. Beijing has loaned Caracas $46bn (£30bn) over the last eight years, of which $24bn (£16bn) has already been repaid with oil.

Before leaving for China, Mr Maduro said: “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.”

In May, Russia signed a £9bn investment deal with Venezuela to develop oil and gas reserves in the Orinoco belt, with the aim of increasing oil production to six million barrels by 2019.

• United Nations officials arrived in Guyana on Tuesday to help resolve a dispute with neighbouring Venezuela over offshore oil exploration rights that was sparked by transnational corporation Exxon Mobil.