By Marianna Parraga and Chen Aizhu
(Reuters) -The first new floating facility to produce crude at a $1 billion project operated by China Concord Resources Corp in Venezuela has arrived in Lake Maracaibo, the country’s second largest output region, according to two sources and images.
The Chinese company, known as CCRC, is moving to ramp up output at two key oilfields in western Venezuela – Lago Cinco and Lagunillas Lago – and hoping to reach 60,000 barrels per day by the end of next year from 12,000 bpd currently. It is a rare boost from a private Chinese firm in the U.S.-sanctioned OPEC country that has struggled to attract foreign investment.
CCRC began negotiating last year its participation in the oilfields with state company PDVSA under a 20-year production sharing contract. The firm has sent Chinese staff skilled in oilfield development, aiming to quickly reopen about 100 wells.
The jackup rig Alula, a self-elevating offshore platform, arrived from China’s Zhoushan port, according to vessel monitoring data, photos, and videos seen by Reuters. It passed under Lake Maracaibo’s bridge last weekend, guided by a tugboat en route to its final location at Lagunillas.
The Sao Tome and Principe-flagged jackup is the first piece of large infrastructure to be installed at Lake Maracaibo in years. The U.S. first imposed sanctions on Venezuela in 2019.
PDVSA and Venezuela’s Oil Ministry did not immediately reply to requests for comment.
Lago Cinco and Lagunillas Lago are expected to produce a mix of light and heavy oil, with light crude to be delivered to PDVSA and heavier crude destined for China, sources told Reuters last month.
PDVSA, which controls joint ventures and contracts in Venezuela, has stabilized oil output at around 1 million bpd this year. Exports rose to a nine-month high of 966,500 bpd last month.
(Reporting by Marianna Parraga; Editing by Nathan Crooks, Rod Nickel)
