A new floating production facility has arrived in Lake Maracaibo, Venezuela, to boost crude oil output at fields operated by China Concord Resources Corp (CCRC), according to Reuters reports citing sources and vessel tracking data.
The US$1 billion (7.14 billion yuan) project is designed to lift production at the Lago Cinco and Lagunillas Lago oilfields in western Venezuela from the current 12,000 barrels per day (bpd) to 60,000 bpd by the end of 2026.
The development marks one of the few recent instances of private Chinese investment in Venezuela’s energy sector, which continues to operate under US sanctions imposed in 2019.
The infrastructure includes the jack-up rig Alula, a self-elevating offshore platform flagged to Sao Tome and Principe.
The rig sailed from Zhoushan port in China and recently crossed Lake Maracaibo’s bridge before installation, Reuters said after reviewing monitoring data and imagery.
It is the first such unit deployed in the lake in several years.
CCRC began discussions with Venezuela’s state-owned oil company Petróleos de Venezuela SA (PDVSA) in 2024, securing a 20-year production sharing agreement.
As part of the venture, CCRC has deployed Chinese specialists to help reopen about 100 wells in the two oilfields.
The fields are expected to produce both light and heavy crude, with lighter grades allocated to PDVSA and heavier streams destined for export to China.
PDVSA has not commented on the new project, but the state firm has managed to stabilise national production at about one million bpd this year, with exports reaching a nine-month peak of 966,500 bpd in 2024, Reuters noted.
