The facility is not producing rigs, according to workers.
Venezuelan state oil company PDVSA bought dozens of drilling rigs from China despite having built a rig production facility through a joint venture with a subsidiary of Chinese oil giant CNPC. Heavy machinery firm XCMG closed an export order of $745 million after agreeing in 2011 to help build a local facility, the location of which has not been determined.
The Chinese loans - some $50 billion since 2007 - have shored up Venezuelan finances at a time when low oil prices have prompted default concerns and effectively shut the country out of global capital markets.īut Venezuela is struggling to make good on promises that Chinese financing would spur new industries and reduce its century-old dependence on the oil industry.Ĭhina, on the other hand, has won a steady supply of oil for its economy and lucrative contracts for its companies to export goods to Venezuela, sometimes in the shadow of China-backed factories meant to produce those very goods locally, a Reuters review of dozens of official Venezuelan documents found.īus-maker Yutong sold $353 million worth of buses upon agreeing in 2013 to help build a factory, which today consists of a patch of cleared land dotted with construction equipment.
While most foreign firms are being battered by Venezuela’s currency controls and product shortages, Chinese companies like Haier are doing brisk business thanks to cooperation deals that give them privileged access to the OPEC nation’s economy but leave business risks in the government’s hands. The cost of leaving Haier’s facility idle is primarily borne by Venezuela’s socialist government, because its construction was bankrolled with $800 million borrowed from China. They are instead imported from Haier factories in China and paid for through an oil-for-loans deal dating from 2007 under which China lends cash and is repaid in crude and fuel. Those appliances, however, are not made in Venezuela. Yutong buses are seen during the opening ceremony of a new avenue and the inauguration of a public transportation route in Los Teques, Venezuela May 16, 2015.
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