A new floating facility to produce crude at a project operated by China Concord Resources Corp (CCRC) has arrived in Lake Maracaibo, Venezuela, reported Reuters, citing two sources and images.

The $1bn (7.14bn yuan) project is set to enhance production at two principal oilfields in western Venezuela, Lago Cinco and Lagunillas Lago.

The company aims to increase its output from the current 12,000 barrels per day (bpd) to 60,000bpd by the end of next year.

This development is a notable instance of foreign investment by a private Chinese company in Venezuela, an OPEC country facing US sanctions.

CCRC began discussions in 2024 with Petróleos de Venezuela SA (PDVSA), Venezuela's state oil company, regarding its role in the oilfields under a 20-year production sharing contract.

The company has dispatched Chinese personnel with expertise in oilfield establishment, with the goal of swiftly reopening approximately 100 wells.

The jack-up rig Alula, a self-elevating offshore platform, journeyed from Zhoushan port in China and recently navigated under Lake Maracaibo's bridge, Reuters reported after seeing vessel monitoring data and visual evidence.

This infrastructure, namely the Sao Tome and Principe-flagged jack-up rig, is the first of its kind to be installed in Lake Maracaibo for several years, arriving amidst ongoing US sanctions initiated in 2019.

PDVSA and the Oil Ministry of Venezuela have not provided immediate comments on the development.

The two oilfields, Lago Cinco and Lagunillas Lago, are expected to yield a combination of light and heavy crude oils.

The light crude is designated for PDVSA, while the heavier variant is expected to be sent to China.

PDVSA has managed to stabilise Venezuelan oil production at around one million barrels per day this year, with exports reaching a nine-month peak of 966,500bpd in 2024.