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Overview

China Eximbank provides $1.6 billion loan to facilitate CNOOC’s acquisition of 45% working interest in offshore Oil Mining License 130 (OML130) in Nigeria from South Atlantic Petroleum Limited

Commitments (Constant USD, 2023)$3,002,425,749
Commitment Year•2006Country of Activity•NigeriaDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 8, 2006
Start (actual)
Apr 20, 2006
End (actual)
Apr 20, 2006
First repayment (originally scheduled)
Jan 7, 2012
Last repayment (originally scheduled)
Jan 6, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • China National Offshore Oil Corporation (CNOOC)

Loan description

China Eximbank provides $1.6 billion loan to facilitate CNOOC’s acquisition of 45% working interest in offshore Oil Mining License 130 (OML130) in Nigeria from South Atlantic Petroleum Limited

Grace period•6 yearsGrant element•31.0084%Interest rate (t₀)•4.05%Interest type•Fixed Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

On January 8, 2006, CNOOC Exploration & Production Limited signed a definitive (sales and purchase) agreement with South Atlantic Petroleum Limited (SAPETRO) to acquire a 45% working interest (ownership stake) in the offshore Oil Mining License 130 (OML 130) in Nigeria for $2.268 billion in cash. To facilitate the acquisition, CNOOC Limited secured a $1.6 billion (RMB 12.8 billion) unsecured loan from China Eximbank. The loan carried the following borrowing terms: a 10-year maturity (final maturity date: 2016), a 6-year grace period, and a 4.05% interest rate. The borrower was responsible for making repayments between 2012 and 2016. The borrower had the right of early repayment without penalty. Then, on April 20, 2006, CNOOC Limited — via CNOOC E&P Nigeria Limited — completed its acquisition at a total consideration of $2.268 billion plus a working capital adjustment of $424 million for financial, operating and capital expenditures. The Akpo Field in OML 130 began production in 2009 and the Egina Field began production in 2019.

Staff comments

1. CNOOC E&P Nigeria Limited, a wholly-owned subsidiary of CNOOC Limited, holds 45% interest of OML 130 block, in partnership with the Nigerian National Petroleum Corporation (NNPC). Total Upstream Nigeria Limited, which holds 24% interest, is the operator, while Petrobras Oil and Gas BV holds 16% interest and South Atlantic Petroleum-SAPETRO holds 15% interest. 2. The sale and purchase agreement between CNOOC Exploration & Production Limited and SAPETRO can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1095595/000090514806004517/efc6-1567_ex449.txt.