The China Development Bank (CDB) will provide a new US$2 billion credit line to Angola’s state oil company Sonangol. The agreement was signed last week in Luanda, reports Angola’s news agency Angop.

According to a statement quoted by Angop, the credit line will be used to finance Sonangol’s oil and gas expansion projects in Angola.

The credit line is valid for 10 years. Sonangol’s Chief Executive Officer, Francisco de Lemos José Maria, said it paves the way for a long-term partnership.

Mr José Maria said CDB is the largest Chinese financial institution in the field of foreign cooperation, particularly in financing projects overseas.

CDB’s credit line will be used to finance projects in the fields of crude oil exploration, refinery and logistics, the firm’s CEO added.

According to the statement, CDB Chairman Zheng Zhijie said that Angola is the second largest supplier of oil-related products to China. He pointed out that the credit line opens a new page in the bank’s partnership with Sonangol.