China's Involvement in Reviving Venezuela's Oil Sector Amid U.S. Sanctions

China, a major player in Venezuela's oil industry, continues its investment amidst U.S. sanctions aimed at reinvigorating production. Despite a production collapse from 3.5 million bpd in the 1990s to 1.1 million bpd, China remains a key buyer and investor, with engagements from major firms like CNPC, Sinopec, and more.

China continues to play a pivotal role in Venezuela's embattled oil sector, even as the U.S. tries to rejuvenate it after President Nicolas Maduro's removal. Mismanagement, lack of investment, and U.S. sanctions saw production slip from 3.5 million to 1.1 million barrels per day last year.

Despite these challenges, Chinese firms persist. Small independent refiners, or "teapots," remain primary buyers of Venezuela's discounted crude, while large state-owned enterprises like CNPC and Sinopec sustain investment in the sector. Analysts estimate Venezuela owes China over $10 billion.

Private companies are not left out. Firms like China Concord Resources and Kerui Petroleum are also involved, with plans to significantly boost oil production. However, the full effect of these investments is unclear due to active sanctions and unresponsive agreements.

(With inputs from agencies.)