Private Chinese firm producing oil in Venezuela under rare 20-year pact, source says
“China Concord Resources Corp has begun developing two Venezuelan oilfields, planning to invest more than $1 billion in a project to produce 60,000 barrels per day of crude oil by end-2026, an executive directly involved in the project said.”
“Beijing has been a key ally of Maduro and his predecessor late President Hugo Chavez and is currently buying more than 90% of Venezuela’s total oil exports.”
“Chinese state oil giant CNPC was among the largest investors in Venezuela’s oil sector before U.S. energy sanctions were first imposed on Venezuela in 2019. China was also a big lender to Venezuela.”
“The contract model, introduced by the Venezuelan government in 2020 under the Anti-Blockade Law to cope with U.S. sanctions, allows investors to act as operators in return for an agreed share of production.”
“With no previous oil drilling experience, CCRC has since last September sent in around 60 Chinese staff skilled in oilfield development and a Chinese drill rig, aiming to quickly reopen about 100 wells and recover crude output, said the executive.”