US Actions Shift Balance in China-Venezuela Oil Relations

Recent US measures affecting Venezuela’s oil sector have altered the dynamics between China, Venezuela, and the United States, with implications for longstanding oil-for-debt agreements and export arrangements.

China’s state-owned oil companies, including Sinopec and CNPC, maintain claims to approximately 4.4 billion barrels of Venezuelan oil reserves, which represents the largest foreign-held stake in the country’s oil sector. These holdings are substantially greater than those of Chevron, which holds claims to about 900 million barrels in Venezuela.

Venezuela’s financial relationship with China has involved at least $10 billion in loans, with repayment structured through oil-for-debt deals. These arrangements have made China Venezuela’s largest creditor, and oil exports to China previously accounted for more than 80% of Venezuela’s total oil exports, though this volume was a small fraction of China’s overall oil imports.

In early January 2026, the United States orchestrated the removal of Venezuelan President Nicolás Maduro and began asserting control over the country’s oil sector. As part of these actions, the US seized multiple oil tankers linked to Venezuela and established a maritime blockade to disrupt the country’s oil exports.

What the numbers show

• China holds claims to about 4.4 billion barrels of Venezuelan oil
• Venezuela owes at least $10 billion to China under oil-for-debt agreements
• US plans to sell 30 million to 50 million barrels of Venezuelan crude from storage

The US administration has announced plans to sell between 30 million and 50 million barrels of Venezuelan crude oil from storage, with proceeds to be deposited in accounts controlled by US authorities. At the same time, the US is permitting China to continue purchasing Venezuelan oil, but only at market prices, rather than the previously discounted rates set under oil-for-debt arrangements.

China’s actual oil production in Venezuela has been limited, accounting for no more than 15% of Venezuela’s output, which remains below 1 million barrels per day. Despite the scale of China’s claims and financial involvement, the volume of oil exported to China represents less than 5% of China’s total oil imports.

China’s embassy in Washington stated that its assets in Venezuela are governed by international law. The embassy also stated that China will take necessary measures to protect its legitimate rights and interests in response to recent developments.

Industry reaction

China’s embassy in Washington stated that its assets in Venezuela are protected by international law and that China will act to safeguard its interests.

No additional institutional responses from US or Venezuelan authorities were documented in the available records.

* This article is based on publicly available information at the time of writing.