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Overview

China Eximbank provides $177.6 million preferential buyer’s credit to UzbekNefteGaz for acquisition of oil rig equipment

Commitments (Constant USD, 2023)$295,097,105
Commitment Year•2007Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 6, 2007
Start (actual)
Sep 1, 2009
End (actual)
Sep 1, 2009
First repayment
Apr 4, 2012
Last repayment
Dec 31, 2022

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% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • JSC Uzbekneftegaz

Implementing agencies

State-owned companies

  • China National Machinery Industry Corporation (Sinomach)
  • China National Petroleum Corporation (CNPC)

Loan desecription

China Eximbank provides $177.6 million preferential buyer’s credit to UzbekNefteGaz for acquisition of oil rig equipment

Grace period•5 yearsGrant element•39.1259%Interest rate (t₀)•3.5%Interest type•Fixed Interest RateMaturity•15.75 years

Narrative

Full Description

Project narrative

On April 6, 2007, the Export-Import Bank of China signed a $177,601,952 preferential buyer’s credit (PBC) agreement with UzbekNefteGaz — a state-owned oil and gas company in Uzbekistan — for the acquisition of large-scale oil rigs, 3D seismic exploration equipment, cement trucks, and other specialized equipment. The loan carried the following terms: a 15.75-year maturity, a 5-year grace period, a 3.5% interest rate, 0.3% commitment fee, and 0.3% management fee. Its final maturity date is January 2023. The proceeds of the PBC were to be used by the borrower to finance 85% of the cost of (a) a commercial contract between Uzgeoburneftegaz (a subsidiary of Uzbekneftegaz) and China Petroleum Technology & Development Corporation, which was signed on April 6, 2007; and (b) a commercial contract between Uzgeoburneftegaz and China National Machinery Industry Corporation (for the supply of 10 cementers), which was signed on April 6, 2007. The combined monetary value of these two commercial contracts was $209.1 million. The remaining commercial contract costs ($31.5 million) that were not covered by the PBC were to be directly funded by Uzbekneftegaz. In September 2009, China Petroleum Technology & Development Corporation and China National Machinery Industry Corporation (SINOMACH) successfully delivered 23 drilling rigs, four cranes, and 10 cementing units (collectively worth $209.1 million).

Staff comments

1. The Russian project title is Оснащение предприятий НХК «Узбекнефтегаз» буровыми установками и сейсморазведочными комплексами 3Д. 2. The consolidated financial statements of JSC “Uzbekneftegaz”, which can be accessed in their entirety via https://www.dropbox.com/s/ns0xcdtkfpin07x/21ef5dee9dfe4403a789c52c07e422f8.pdf?dl=0, identify the face value of the PBC as $172 million. This issue warrants further investigation. 3. This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.