The facility — a jackup rig named Alula — sailed from Zhoushan port in China and passed under the iconic Lake Maracaibo bridge last weekend, guided by tugboats to its designated location at Lagunillas, according to vessel data and images seen by Reuters. Registered under the flag of Sao Tome and Principe, the rig represents the first major infrastructure installation in the lake region in years.
Ramp-Up in Production
CCRC, a privately owned Chinese company, is preparing to expand operations at two western Venezuelan oilfields — Lago Cinco and Lagunillas Lago. Current production at the sites stands at around 12,000 barrels per day (bpd), but the company is targeting 60,000 bpd by the end of 2026, according to sources familiar with the plan.
The expansion effort falls under a 20-year production-sharing agreement negotiated with Venezuela’s state-run PDVSA last year. To accelerate the project, CCRC has dispatched Chinese engineers and oilfield specialists to reopen about 100 idle wells.
Output from the fields is expected to include a mix of light and heavy crude. Sources indicate that lighter grades will be supplied to PDVSA for domestic refining, while heavier barrels will be exported directly to China.
Strategic Significance
The arrival of Alula underscores Beijing-linked firms’ growing interest in Venezuela’s energy sector, which has struggled to attract foreign investment under U.S. financial and oil sanctions. While Chinese state companies have traditionally led the way in Venezuela, CCRC’s investment marks a notable push from the private sector.
PDVSA, which oversees joint ventures and contracts across the country, has stabilized national crude output at around 1 million bpd this year. Exports climbed to 966,500 bpd in August, the highest in nine months, according to shipping data.
Officials from PDVSA and the Venezuelan Oil Ministry have not publicly commented on the deployment of the rig.