New Floating Facility Arrives in Venezuela
The first new floating facility to produce crude at a $1 billion project operated by China Concord Resources Corp in Venezuela has reached Lake Maracaibo. This marks the country’s second largest output region and signals renewed foreign involvement in its struggling oil industry.
CCRC Targets Production Growth
The first new floating facility to produce crude at a $1 billion project highlights CCRC’s strategy. The company aims to ramp up production at Lago Cinco and Lagunillas Lago. Output is projected to rise from 12,000 barrels per day to 60,000 by the end of next year.
Rare Investment in Sanctioned Venezuela
The first new floating facility to produce crude underscores the rarity of foreign private investment in Venezuela. U.S. sanctions imposed since 2019 have deterred many international firms. CCRC’s involvement represents a significant boost for the oil sector, which has struggled to secure long-term partnerships.
Partnership With PDVSA
The first new floating facility to produce crude in Lake Maracaibo comes after CCRC negotiated a 20-year production sharing contract with PDVSA. The Chinese firm has sent experts to reopen nearly 100 wells. The partnership aims to restore capacity in key oilfields in western Venezuela.
Arrival of the Alula Jackup Rig
The first new floating facility to produce crude is accompanied by the jackup rig Alula. This self-elevating platform traveled from Zhoushan port in China. Guided by a tugboat, it passed under Lake Maracaibo’s bridge before reaching Lagunillas. It is the first major infrastructure addition in years.
Production Split Between PDVSA and China
The first new floating facility to produce crude is expected to deliver both light and heavy oil. Sources say light crude will be sent to PDVSA, while heavy grades are destined for China. This dual strategy reflects both domestic needs and export commitments under the partnership.
Venezuela’s Stabilized Output
The first new floating facility to produce crude complements PDVSA’s efforts to stabilize national output. Production has steadied around 1 million barrels per day in 2025. Exports reached 966,500 bpd last month, marking a nine-month high despite ongoing sanctions and infrastructure challenges.
Outlook for CCRC’s Expansion
The first new floating facility to produce crude positions CCRC as a major foreign player in Venezuela’s oil industry. With production goals set to quintuple, the company could reshape output in Lake Maracaibo. Success will depend on operational efficiency, geopolitical stability, and sustained cooperation with PDVSA.