China's Oil Firms Scramble to Protect Venezuela Assets

Chinese state-owned oil companies are urgently seeking guidance from Beijing on how to safeguard their vast investments in Venezuela as Washington intensifies its economic pressure on the South American nation.

Led by China National Petroleum Corp. (CNPC), these firms have raised their concerns with government agencies, looking for an official strategy to navigate the escalating crisis. According to sources familiar with the private discussions, the goal is to align corporate responses with China's diplomatic policy and salvage claims to some of the world's largest oil reserves.

The companies are conducting their own risk assessments on the ground, a process that began even before the US recently targeted President Nicolas Maduro. Simultaneously, top officials in Beijing are reviewing China's total exposure, reportedly planning for multiple scenarios, including a worst-case outcome where their investments in Venezuela could be completely lost.

These emergency consultations highlight the high stakes for China's energy giants, who were caught off guard by the speed of Washington's moves to assert its influence in the region. Beyond the immediate financial risks, the companies are worried about their long-term prospects in a country central to their Latin American footprint.

Billions in Oil-Backed Loans at Stake

China has built a significant presence in Latin America over the past two decades, with Venezuela being a key recipient of its investment, partly due to its immense oil wealth.

The financial relationship began in 2007 under former President Hugo Chavez, with China extending financing for infrastructure and energy projects. By 2015, state-run Chinese banks had provided more than $60 billion in loans, mostly backed by oil shipments.

As US sanctions tightened over the years, China became Venezuela's largest creditor and its biggest customer for crude oil. Major state-owned producers, including CNPC (the parent of PetroChina Co.) and China National Offshore Oil Corp. (CNOOC), established oil and gas projects in the Orinoco heavy crude belt and invested in refining facilities.

Operational Realities and Shifting Risks

In recent years, Chinese companies have grown more cautious as Venezuela's economy deteriorated and energy projects operated far below their designed capacity. While most firms scaled back their operations, some, like CNPC, have maintained staff on the ground to manage joint ventures with the Venezuelan state oil company, PDVSA.

However, Venezuela still owes billions of dollars. In response to the growing uncertainty, China's top financial regulator has asked key policy lenders, such as the China Development Bank, to report their total credit exposure and enhance their risk monitoring.

Decades of mismanagement have crippled Venezuela's oil infrastructure, causing crude production to plummet under Maduro. In 2025, oil purchases from Venezuela represented just 4% of China's total crude imports. For Chinese producers, the more pressing concern is the sheer scale of their past spending and the potential loss of future access to the country's reserves.

Beijing Slams US 'Bullying' Amid Geopolitical Squeeze

The corporate maneuvering is unfolding against a backdrop of diplomatic tension. China has openly criticized the Trump administration for reportedly demanding that Venezuela sever its alliances with US rivals, calling the move a "bullying act."

Beijing insists that the rights of other nations must be protected. This statement followed reports that the White House had instructed Venezuela to cut its ties with China, Russia, Iran, and Cuba, which have long been its primary international partners.

China's largest oil companies—CNPC, Sinopec, and CNOOC—did not immediately respond to requests for comment, nor did SASAC, the agency that supervises state-owned enterprises.