Overview

Sinopec Overseas Oil & Gas Limited provides $437.5 million shareholder loan to Mansarovar Energy Colombia Ltd. to support its Teca oil field operations

Commitments (Constant USD, 2023)$820,975,791

Commitment Year•2006Country of Activity•ColombiaDirect Recipient Country of Incorporation•BermudaOverseas Jurisdiction•Cayman IslandsSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 18, 2006

Start (actual): Sep 18, 2006

End (actual): Dec 31, 2021

Last repayment (originally scheduled): Dec 31, 2021

Geospatial footprint

Map overview

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Teca-Cocorná Bloc, Middle Magdalena Basin, Colombia.

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 companies

Sinopec Overseas Oil & Gas Limited (SOOGL)

Receiving agencies

Joint Venture/Special Purpose Vehicles

Mansarovar Energy Colombia Ltd.

Loan desecription

Sinopec Overseas Oil & Gas Limited provides $437.5 million shareholder loan to Mansarovar Energy Colombia Ltd. to support its Teca oil field operations

Grant element•15.9921%Interest rate (t₀)•6.43938%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•15.25 years

Narrative

Full Description

Project narrative

On September 18, 2006, Sinopec Overseas Oil & Gas Limited (SOOGL) and Mansarovar Energy Colombia Ltd. — a special purpose vehicle legally incorporated in Bermuda — signed a $437.5 million shareholder loan agreement. The unsecured loan carried a 15.25-year maturity (final maturity date: December 31, 2021) and an annual interest rate that was not to exceed LIBOR plus a 1% margin. The borrower was expected to use the loan proceeds to support its Teca oil field operations. As of December 31, 2012, the (principal) amount outstanding under the loan was $347,872,314.62. ONGC Videsh and Sinopec bought the Teca oil field from US-based Ominex Resources for $850 million in 2006, and the two (Indian and Chinese) state-owned oil firms had been operating through the joint venture known as Mansarovar Energy Colombia Ltd. However, after Colombia’s national oil company Ecopetrol took control of the Teca oil field in 2008, ONGC Videsh and Sinopec announced that they would take Ecopetrol to arbitration.

Staff comments

1. AidData has estimated the all-in interest rate by adding 1% to average 6-month LIBOR in September 2006 (5.40915%).