China’s Oil Giants Turn to Beijing as Venezuela Shock Raises Stakes

China’s biggest oil companies are scrambling for direction as Washington turns up the heat on Venezuela. State-backed giants led by China National Petroleum Corp. have quietly sought guidance from Beijing on how to salvage existing claims to some of the world’s largest oil reserves, after the US arrest of Nicolas Maduro, people familiar with the situation said. Executives are running their own damage assessments while senior Chinese officials review exposure and even worst-case scenarios in which decades of investments could be wiped out, the people said, in a sign of how caught off guard Beijing and its corporate champions were by the speed and force of US action.

The anxiety reflects just how deep China’s stake runs. Over nearly two decades, Beijing poured tens of billions of dollars into Venezuelan oil, gas, refining and infrastructure, becoming the country’s largest oil buyer and its biggest creditor as US sanctions tightened. While production has withered and imports now make up a small slice of China’s crude needs, Venezuela still owes billions and holds some of the world’s largest reserves. With Washington reportedly pressing Caracas to cut ties with China and other rivals, Chinese firms now face a stark question: whether their long bet on Venezuela’s oil wealth can survive a far more confrontational US strategy in the Americas.