Private Chinese Firm Invests $1 Billion to Pump 60,000 Bpd Crude in Venezuela

oilprice.com ^ | Aug 22, 2025, 7:30 AM CDT | Tsvetana Paraskova

[dennisw]

Private Chinese firm China Concord Resources Corp (CCRC) is developing two oilfields in Venezuela, from which it expects to produce 60,000 barrels per day (bpd) of crude by the end of next year, thanks to a planned investment of $1 billion, an executive involved in the project told Reuters on Friday.

Private Chinese operators are a rare sight in Venezuela, where Chinese state-held majors have developed oilfields in the past.

Yet, CCRC has signed a 20-year production sharing contract with Venezuela and is already producing 12,000 bpd from two oilfields

The Chinese company’s plan entails pumping as much as 60,000 bpd from the two fields by the end of 2026 by reopening mothballed wells and developing new ones. The light crude from the fields would go to Venezuela’s state oil firm PDVSA, while the heavy crude is set to be shipped to China, according to the executive.

China’s state firms have stopped buying oil from Venezuela after the 2019 sanctions under President Trump’s first term in office. But independent Chinese refiners are key customers of Venezuela’s crude and have continued importing it through the years.

Large companies are also staying away from Venezuela, which has opened the door to private firms such as CCRC.

“Because of the U.S. sanctions on Venezuela's oil sector, no big-name companies would dare operate there, handing opportunities to small companies like Concord,” the executive told Reuters.

U.S. supermajor Chevron is a rare Venezuelan presence among the biggest international oil firms, now that its license to operate in the country holding the world’s biggest crude reserves has been reinstated.

At the end of July, the Trump Administration granted Chevron a sanction exemption for its operations in Venezuela

Last week, Chevron dispatched the first two Venezuelan crude cargoes to the U.S. since Washington restored its license.

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TOPICS: Business/Economy; China; Foreign Affairs; Front Page News; Government; Politics/Elections
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[dennisw]

The ChiComs making their moves into our domain per The Monroe Doctrine.

[OHPatriot]

Looks like China just bought Venezuela. Just wait until China calls for repayment of the investment and Venezuela can’t pay.

[kvanbrunt2]

I think it’s the worst oil anywhere for gasoline. Too much sulfur.

[Bobbyvotes]

Export American manufacturing to boost corporate profits will end up China owning USA industry.

[Gen.Blather]

The industry calls it “extra heavy crude.” I understand it’s like tar. As opposed to “light, sweet crude” the industry gold standard. A refinery is designed from the ground up to process one type or the other. Switch type and it causes all sorts of expensive problems.

[Liz]

Oil tankers in Venezuela.

[Vermont Lt]

This is how China operates. They buy their way in. It’s like the mafia or street gangs.

We would rather write strongly worded letters.

[lgjhn23]

“..I think it’s the worst oil anywhere for gasoline. Too much sulfur....”

It’s pretty nasty stuff, especially when compared to the light condensate that come out of a typical Texas fracking operation.
IIRC, there’s really only a couple of refineries in the USA that can handle that heavy stuff: both are CITGO (still Venezuela-owned??). One in Lake Charles, LA and the other in Corpus Christi, TX. The domestic Venezuela refineries obviously could handle it, but when the communists took over and “nationalized” em, all the American experience, talent and cash flow left leaving them with no means to run em very well. Apparently, this private Chinese firm feels that they have the goods and means to do so. We’ve been putting “the squeeze” on em for some time now. They still owe us for the infrastructure investment that they outright stole as well.

[HighSierra5]

The Chicoms are like the planetary locusts.

[crusty old prospector]

It is basically black snot.

[ding_dong_daddy_from_dumas]

The phrase “private Chinese....” is dubious.

[Harmless Teddy Bear]

There are no "Private Chinese firms".

Today's lesson brought to you by the letter "R" for "Reality".

The more you know.

[ShadowAce]

(I'm guessing at the profit here)

At $1/Barrel profit, that would take over 45 YEARS to make a profitable oil field.

I think the Venesualans (?) took the Chinese for a ride here.

[Tijeras_Slim]

That’s not much, New Mexico pumps 1 million BPD.

[july4thfreedomfoundation]

President Trump always said that Venezuelan oil is difficult to refine.

[Svartalfiar]

At $1/Barrel profit, that would take over 45 YEARS to make a profitable oil field.

I think the Venesualans (?) took the Chinese for a ride here

Or, here in a couple years, the well isn't producing enough heavy to meet minimum shipment levels to China, so Venezuela defaults on the contract, China takes the whole well, and ships everything to China!