Bloomberg: What role does China play in Venezuela's oil industry? Which other foreign oil companies are operating in Venezuela?
China National Petroleum Corporation (CNPC) has long been collaborating with the Venezuelan state-owned oil company, PDVSA, to produce Venezuela's oil. Most of Venezuela's oil is sold to Chinese buyers through middlemen. These oil supplies are mostly used to repay the billions of dollars in oil-backed loans that China has provided to Venezuela, and the interest rates on these loans are often far below market rates. Recently, the United States imposed sanctions on Chinese companies and vessels involved in Venezuela's oil industry, further exacerbating Venezuela's financial pressure.
Chevron has long claimed that its presence in Venezuela is a fortress against the influence of China and other American rivals. However, even during Trump's first term, when U.S. oil operations in Venezuela were at their lowest level, China did not significantly expand its actual presence in Venezuela. Beijing strongly condemned the U.S. efforts to overthrow Maduro's government. "This hegemonic behavior by the United States seriously violates international law and Venezuela's sovereignty, threatening the peace and security of Latin America and the Caribbean, and China firmly opposes it."
Venezuela exports oil to China via so-called "ghost ships," which conceal the source of the oil to evade sanctions. China purchases Venezuelan oil through independent refineries known as "teapots," most of which are concentrated in northern China.
Which other foreign oil companies are operating in Venezuela?
Foreign oil companies operating in Venezuela include Spain's Repsol, Italy's Eni SpA, and France's Maurel et Prom SA. Other companies, such as TotalEnergies, have voluntarily left the country. In recent years, Shell Plc has been seeking to return to Venezuela to develop its abundant natural gas resources.
Rosneft has transferred its assets in Venezuela to an alternative company not subject to sanctions - a legal way to circumvent the sanctions.
After the implementation of U.S. oil sanctions, Reliance Industries of India was once a major buyer of Venezuelan oil, but in recent years, due to concerns about facing U.S. sanctions again, the company has distanced itself from Venezuela.
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Original: toutiao.com/article/1853342018564096/
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