China now taking 28% of Venezuela oil production to repay debt

Venezuela only paid the interest on $19 billion in loans from China for the past two years. Some sources say the outstanding debt is $23 billion and other reports $50 billion in loans.

Venezuela sent 700,000 barrels per day of crude and fuel to China through bilateral agreements, according to a Reuters review of PDVSA trade documents.

Only around 70,000 barrels per day were applied to debt service under the grace period arrangement. China paid for the remainder in cash. Oil was $50 per barrel in 2017. This means China bought about $11.5 billion in oil from Venezuela and Venezuela paid $1.28 billion in interest in 2017.

Without the grace period, the amount applied to debt service rises to 375,000 bpd. China will take 28% of Venezuela’s 1.34 million barrel per day oil production. Venezuela will not get cash but would have to send oil for about three years to pay off the debt.

Venezuela Oil Production Keeps Falling

Venezuela’s oil production dropped by another 47,500 barrels per day (bpd) in June, compared to a month earlier. Venezuela’s oil production has fallen 800,000 barrels per day from the same time in 2017. Oil Workers are quitting and taking equipment and trucks when they leave. This is causing oilfield shutdowns. Total production dip will be below 1 million barrels per day (mb/d) within months.

If Venezuela oil production completely collapses then China would not be able to collect.

China is considering a $250 million investment and even a $5 billion bailout. However, it is clear those levels of investment will not be enough to turn around the collapse in Venezuela. For each 100,000 b/d per year of production increase, about $4 billion per year in additional investment would be required.

However, China’s investment money could be enough to stabilize the newer joint venture oil fields at 1 million barrels per day. China would have to take control of the fields in order to ensure their production.

67 thoughts on “China now taking 28% of Venezuela oil production to repay debt”

  1. Predatory lending at its finest! Imperialistic colonialism at its finest! Do you suppose they will get a deep water harbor for their new aircraft carrier? Maybe China will throw in some plastic rice for the hungry like they did in Jamaica. The Russian mafia can’t be far behind.

    Reply
  2. China would have to take control of the fields in order to ensure their production.” Their later seizure by Maduro “for the people” will be wonderfully ironic.

    Reply
  3. China would have to take control of the fields in order to ensure their production.””Their later seizure by Maduro “”””for the people”””” will be wonderfully ironic.”””

    Reply
  4. If you believe the news from someone protraying Iraqi had WMD in front of the UN Assembly Hall, I guess you even can believe I have a bridge to sell.

    Reply
  5. Good luck trying to get your money out China. You would invade the country and take over to get anything done and President Two Scoops isn’t going to let you do that.

    Reply
  6. If you believe the news from someone protraying Iraqi had WMD in front of the UN Assembly Hall I guess you even can believe I have a bridge to sell.

    Reply
  7. Good luck trying to get your money out China. You would invade the country and take over to get anything done and President Two Scoops isn’t going to let you do that.

    Reply
  8. China needs oil, Venezuela needs competent adult management. Seems like a solution to me. Also, YAY FOR FINALLY BEING ABLE TO LOG IN to the new comment system.

    Reply
  9. China would have to take control of the fields in order to ensure their production.” the next story will be China treating Venezuela like an African country and Chinese denies Venezuela local worker jobs by bringing Chinese workers into Venezuela. American MSM will have a hay day on smearing China in the South America.

    Reply
  10. American got nearly 2 billion USD out of China by framing ZTE breaking American laws; mind you this is neither the first time and nor the last time the American steal Chinese money from China.

    Reply
  11. The American lost oil business in Venezuela to China, it is puzzling that Trump and Navarro have not alleged China stealing business from USA in Venezuela and started imposing fines on China National Offshore Oil Corporation to make up their alleged losses.

    Reply
  12. Having worked with PDVSA as an executive of Gulf Oil Corporation 1969-1980 I can assure you that PRC will take over the Maracaibo reserves [discovered by Gulf in 1922] and control short haul economics in the Carribean and export the balance of Venezuela’s 2o grades of crude oil to China. I US production will rise to 11mmb/d 2019 so US refineries will not have to depend on Venezuelan oil. CITGO wil likely be nationalized by the USG in favor of EXXON. US refiners such as PBF Holly Frontier and Valero will litigate this. But they will be short shrifted as China will ship Venezuelan crude oils to SINOPEC and CNOOC refineries.

    Reply
  13. China needs oil Venezuela needs competent adult management. Seems like a solution to me.Also YAY FOR FINALLY BEING ABLE TO LOG IN to the new comment system.

    Reply
  14. China would have to take control of the fields in order to ensure their production.”” the next story will be China treating Venezuela like an African country and Chinese denies Venezuela local worker jobs by bringing Chinese workers into Venezuela. American MSM will have a hay day on smearing China in the South America.”””

    Reply
  15. American got nearly 2 billion USD out of China by framing ZTE breaking American laws; mind you this is neither the first time and nor the last time the American steal Chinese money from China.

    Reply
  16. The American lost oil business in Venezuela to China it is puzzling that Trump and Navarro have not alleged China stealing business from USA in Venezuela and started imposing fines on China National Offshore Oil Corporation to make up their alleged losses.

    Reply
  17. Go with the egotist; Morons don’t achieve that kind of power. He’s only a moron if you assume he wants the best for his people. If you assume he just wanted to become filthy rich while ruling with an iron fist, (The usual motivation of socialist/communist leaders.) he’s clever, just amoral.

    Reply
  18. Having worked with PDVSA as an executive of Gulf Oil Corporation 1969-1980 I can assure you that PRC will take over the Maracaibo reserves [discovered by Gulf in 1922] and control short haul economics in the Carribean and export the balance of Venezuela’s 2o grades of crude oil to China. I US production will rise to 11mmb/d 2019 so US refineries will not have to depend on Venezuelan oil. CITGO wil likely be nationalized by the USG in favor of EXXON. US refiners such as PBF , Holly Frontier and Valero will litigate this. But they will be short shrifted as China will ship Venezuelan crude oils to SINOPEC and CNOOC refineries.

    Reply
  19. Go with the egotist; Morons don’t achieve that kind of power.He’s only a moron if you assume he wants the best for his people. If you assume he just wanted to become filthy rich while ruling with an iron fist (The usual motivation of socialist/communist leaders.) he’s clever just amoral.

    Reply
  20. Better hurry, President Two Scoops might not have another term … and the back half of his term in will be ruined by those damn Democrats and their “blue wave”! The next president might not be so myopic. Also, the Monroe Doctrine is not dead. Don’t think that Uncle Sam is going to allow a Chinese foothold in this hemisphere. If China isn’t blocked outright it will suffer a death of a thousand cuts once they go in. The CIA is expert at that sort of thing. Just ask the local goverments.

    Reply
  21. Yes, the Chinese will take over Venezuelan oil production and employ Chinese workers in that effort. It is an irresistible opportunity for them to establish a foothold in the US backyard and to simultaneously gain control of the largest petroleum reserve on the planet. When they do, Venezuelan oil will flow in abundance, the Chinese will have a solid base in South America, and as the guarantors of Venezuelan security, the US regime change effort there will be decisively terminated. The end of the Monroe Doctrine and the beginning of the era of Chinese global influence (if not dominance). All due to the strategic indifference of the US brought about by the subversion and subordination of US national interest to the interests of the Neocons, Neoliberals, and the MIC.

    Reply
  22. .. Yeah Unmentioned by Wu Mau Jor here is how Trump’s tariffs are slaughtering the value of the yuan and China is banning news from reporting on its collapsing stock markets nor that it ordered SOEs to buy stocks to shore them up.

    Reply
  23. Better hurry President Two Scoops might not have another term … and the back half of his term in will be ruined by those damn Democrats and their blue wave””! The next president might not be so myopic. Also”””” the Monroe Doctrine is not dead. Don’t think that Uncle Sam is going to allow a Chinese foothold in this hemisphere. If China isn’t blocked outright it will suffer a death of a thousand cuts once they go in. The CIA is expert at that sort of thing. Just ask the local goverments.”””

    Reply
  24. Yes the Chinese will take over Venezuelan oil production and employ Chinese workers in that effort. It is an irresistible opportunity for them to establish a foothold in the US backyard and to simultaneously gain control of the largest petroleum reserve on the planet. When they do Venezuelan oil will flow in abundance the Chinese will have a solid base in South America and as the guarantors of Venezuelan security the US regime change effort there will be decisively terminated.The end of the Monroe Doctrine and the beginning of the era of Chinese global influence (if not dominance). All due to the strategic indifference of the US brought about by the subversion and subordination of US national interest to the interests of the Neocons Neoliberals and the MIC.

    Reply
  25. ..Yeah Unmentioned by Wu Mau Jor here is how Trump’s tariffs are slaughtering the value of the yuan and China is banning news from reporting on its collapsing stock markets nor that it ordered SOEs to buy stocks to shore them up.

    Reply
  26. Better hurry, President Two Scoops might not have another term … and the back half of his term in will be ruined by those damn Democrats and their “blue wave”! The next president might not be so myopic.

    Also, the Monroe Doctrine is not dead. Don’t think that Uncle Sam is going to allow a Chinese foothold in this hemisphere. If China isn’t blocked outright it will suffer a death of a thousand cuts once they go in. The CIA is expert at that sort of thing. Just ask the local goverments.

    Reply
  27. Yes, the Chinese will take over Venezuelan oil production and employ Chinese workers in that effort. It is an irresistible opportunity for them to establish a foothold in the US backyard and to simultaneously gain control of the largest petroleum reserve on the planet. When they do, Venezuelan oil will flow in abundance, the Chinese will have a solid base in South America, and as the guarantors of Venezuelan security, the US regime change effort there will be decisively terminated.

    The end of the Monroe Doctrine and the beginning of the era of Chinese global influence (if not dominance). All due to the strategic indifference of the US brought about by the subversion and subordination of US national interest to the interests of the Neocons, Neoliberals, and the MIC.

    Reply
  28. ..
    Yeah
    Unmentioned by Wu Mau Jor here is how Trump’s tariffs are slaughtering the value of the yuan and China is banning news from reporting on its collapsing stock markets nor that it ordered SOEs to buy stocks to shore them up.

    Reply
  29. Go with the egotist; Morons don’t achieve that kind of power.

    He’s only a moron if you assume he wants the best for his people. If you assume he just wanted to become filthy rich while ruling with an iron fist, (The usual motivation of socialist/communist leaders.) he’s clever, just amoral.

    Reply
  30. Having worked with PDVSA as an executive of Gulf Oil Corporation 1969-1980 I can assure you that PRC will take over the Maracaibo reserves [discovered by Gulf in 1922] and control short haul economics in the Carribean and export the balance of Venezuela’s 2o grades of crude oil to China.

    I US production will rise to 11mmb/d 2019 so US refineries will not have to depend on Venezuelan oil. CITGO wil likely be nationalized by the USG in favor of EXXON. US refiners such as PBF , Holly Frontier and Valero will litigate this. But they will be short shrifted as China will ship Venezuelan crude oils to SINOPEC and CNOOC refineries.

    Reply
  31. China needs oil, Venezuela needs competent adult management. Seems like a solution to me.

    Also, YAY FOR FINALLY BEING ABLE TO LOG IN to the new comment system.

    Reply
  32. “China would have to take control of the fields in order to ensure their production.” the next story will be China treating Venezuela like an African country and Chinese denies Venezuela local worker jobs by bringing Chinese workers into Venezuela. American MSM will have a hay day on smearing China in the South America.

    Reply
  33. American got nearly 2 billion USD out of China by framing ZTE breaking American laws; mind you this is neither the first time and nor the last time the American steal Chinese money from China.

    Reply
  34. The American lost oil business in Venezuela to China, it is puzzling that Trump and Navarro have not alleged China stealing business from USA in Venezuela and started imposing fines on China National Offshore Oil Corporation to make up their alleged losses.

    Reply
  35. “China would have to take control of the fields in order to ensure their production.”

    Their later seizure by Maduro “for the people” will be wonderfully ironic.

    Reply

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