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.
This is obviously a geopolitical decision to support actually existing socialism in Venezuela against US pressure. Is Venezuelan oil convenient? No, it’s actually kind of a huge pain in the ass. But there remains a sort of mercantilist version of proletarian internationalism in China’s trade decisions. The number one thing sanctioned countries need is big, powerful trading partners buying their key export commodities and developing their productive forces.
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.
Production at the two fields, largely mothballed in recent years due to lack of investment and technical expertise, is now running at 12,000 bpd, said the executive.
Productive forces developing.
I might just be paying more attention lately, but it seems like China is making moves to create stronger bonds with AES countries and places where there is a large socialist presence or a history of socialism.
Venezuela, Cuba, Laos, Nicaragua, and others have all been making trade deals and other agreements since ~2023
We cannot be burning oil in 20 years.
Entao
