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Sources say that China Concord's floating oil facility has arrived in Venezuela to support the project.

According to two sources, and based on images, the first floating crude production facility for a $1 billion China Concord Resources Corp project in Venezuela is now in Lake Maracaibo. This is Venezuela's second-largest output region.

The Chinese firm, CCRC is aiming to increase production at two oilfields located in western Venezuela – Lago Cinco, and Lagunillas Lago – and hopes to reach 60,000 barrels a day by the end next year, up from 12,000 bpd. This is a rare boost for a Chinese private firm in an OPEC-sanctioned country that has been struggling to attract foreign investments.

CCRC began negotiating its participation in oilfields last year with the state company PDVSA, under a production-sharing contract of 20 years. The company has sent Chinese oilfield developers to help reopen 100 wells quickly.

According to vessel tracking data, photos and videos, the jackup Alula is a self elevating offshore platform that arrived from China's Zhoushan Port. Last weekend, it was guided by a towboat under the bridge of Lake Maracaibo on its way to Lagunillas.

The Sao Tome & Principe flagged jackup is a large piece of infrastructure that has been installed on Lake Maracaibo for the first time in many years. The U.S. imposed its first sanctions against Venezuela in 2019.

PDVSA, Venezuela's Oil Ministry and the PDVSA did not respond to comments immediately.

Sources told us last month that Lago Cinco, and Lagunillas Lago, are expected to produce both light and heavy crude oil. The lighter crude will be delivered to PDVSA, and the heavier crude will go to China. PDVSA has stabilised oil production at around 1,000,000 bpd in Venezuela this year. Last month, exports reached a new high of 966 500 bpd.

(source: Reuters)