Chinese Company Launches $1 Billion Oil Project with PDVSA in Venezuela

China Concord Resources Corp (CCRC) has installed the self-elevating offshore oil platform Alula in Venezuela’s Lake Maracaibo as part of a $1 billion project aimed at increasing crude production.

First Major Energy Infrastructure in Years

The Alula platform, which arrived from Zhoushan, China and operates under the flag of São Tomé and Príncipe, is the first significant infrastructure project in the region in many years. CCRC plans to raise production from the Lago Cinco and LaguniIlas Lago oilfields from 12,000 barrels per day to 60,000 barrels per day by the end of 2026 under a 20-year production-sharing agreement with Venezuela’s state oil company PDVSA.

Production and Oil Allocation

The project will revive output from around 100 wells. Under the terms, light crude will be allocated to PDVSA while heavier crude will be exported to China. The deal represents a rare example of private Chinese investment in Venezuela, an OPEC member struggling with US sanctions since 2019, which have curtailed foreign investment.

PDVSA Stabilizes National Production

In 2025, PDVSA managed to stabilize Venezuela’s oil production at approximately 1 million barrels per day. Meanwhile, exports reached a nine-month high of 966,500 barrels per day in August 2024, reflecting a modest recovery in the sector.