Venezuela: Now the Chinese Move In

The Americans move out and the Chinese move in. The day after Exxon and ConcoPhillips pulled out of heavy oil projects in Venezuela, the China Petrochemical Corp, known as Sinopec, the nation’s second-largest oil producer, is in talks to drill for oil in the country.

The company is seeking “heavy oil” projects, said a company a spokesman. China has strengthened links with Venezuela as part of efforts to secure energy supplies for the world’s fastest-growing major economy. The countries signed $11 billion of energy and transportation accords last August when Chavez visited China.

“This shows China is really eager to develop projects in countries like Venezuela, even though there are potential risks, given unstable social conditions,” Rachel Tsang, head of oil and gas research at Nomura International (Hong Kong) Ltd., said.

And its not just Venezuela where the Chinese are taking a risk: its Sudan, Nigeria…