Narrative
Full Description
Project narrative
On July 22, 2015, Maten Petroleum JSC — a joint venture of Sino-Science Netherland Energy Group B.V. (95% equity stake) and Ablazimov Baharidin Nugmanovich (5% equity stake) — entered into a $380 million credit line agreement and a $50 million credit line agreement with JSC AB “Bank of China Kazakhstan”. The borrower was expected to primarily use the borrowings through the credit lines to (a) acquire the shares of KoZhan JSC and (b) repay loans provided by a subsidiary of Sberbank of Russia JSC and Sberbank of Russia JSC. The $380 million credit line agreement disbursed in two tranches: a $180 million tranche (with a maturity date of July 30, 2018 an interest rate of 3-month LIBOR plus a 2.75% margin) in July 2015 and a $200 million tranche (with a maturity date of August 10, 2022 an interest rate of 3-month LIBOR plus a 3.6% margin) in August 2015. Then, on March 29, 2016, the $50 million credit line agreement fully disbursed in a single tranche (with a maturity date of July 23, 2018 an interest rate of 3-month LIBOR plus a 2.75% margin). The borrowings under the credit line agreements were collateralized against Maten Petroleum JSC’s outstanding shares (equity stake) in KoZhan JSC and subsoil use contracts for Maten, East Kok-Arna, Kara-Arna, Morskoe, Karatal and Dauletaly. As of December 31, 2016, Maten Petroleum JSC breached financial covenants imposed by JSC AB “Bank of China Kazakhstan”. As a result, the borrowings through the credit line agreements were classified as ‘on demand’. Then, on January 9, 2018, Maten Petroleum JSC signed an additional agreement with JSC AB “Bank of China Kazakhstan” on restructuring the main debt and rescheduling the maturity date of the $180 million tranche from July 30, 2018 to April 22, 2022. In 2018, Maten Petroleum JSC also received a letter from Geo-Jade Petroleum Corporation — the parent company of Sino-Science Netherlands Energy Group BV — in which it communicated that it intended and was able, if necessary, to provide Maten Petroleum JSC with sufficient funds to enable Maten Petroleum JSC to continue its normal operations for at least 12 additional months.
Staff comments
1. Maten Petroleum JSC was incorporated under the legislation of the Republic of Kazakhstan as a joint stock company and registered with the Ministry of Justice of the Republic of Kazakhstan on September 3, 2010. Between 2014 and 2017, Maten Petroleum JSC was jointly owned by Sino-Science Netherland Energy Group B.V. (95% equity stake) and Ablazimov Baharidin Nugmanovich (5% equity stake). 2. Maten Petroleum JSC is engaged in ownership and management of the following oil and gas assets: (1) production license series GKI № 92-D-1 (crude oil) for the Kara Arna oil field with expiration date on February 19, 2023; (2) exploration and production license series GKI № 1015 (crude oil) for the East Kokarna oil field with expiration date on January 1, 2028; and (3) production license series № MG290-D (crude oil) for the Matin oil field with expiry date of October 13, 2020. All oil fields are located in Atyrau Region, in the Republic of Kazakhstan. 3. On August 12, 2015, Maten Petroleum JSC acquired 100% shares (10,748,046 common shares) of KoZhan JSC for a cash consideration of $340,495,300. 4. KoZhan JSC is engaged in ownership and management of the following oil and gas assets: (1) combined contract for exploration and production of hydrocarbons No. 1103 for the Morskoye oil field with expiration date on February 17, 2034; (2) combined contract for exploration and production of hydrocarbons No. 1102 for the Dauletaly oil field with expiration date on February 17, 2034; and a (3) combined contract for exploration and production of hydrocarbons No. 1104 for the Karatal oil field with expiration date of February 17, 2034. 5. Sino-Science Netherlands Energy Group BV is a wholly-owned subsidiary of Geo-Jade Petroleum Corporation (one of China's largest privately oil exploration and production companies). 6. KoZhan JSC is a subsidiary of Maten Petroleum JSC. 7. AidData has estimated the all-in interest rate by adding 3.6% to average 3-month LIBOR in August 2015 (0.32080%).