China Eximbank provides RMB 200 million government concessional loan for Gas Field Drilling Equipment Acquisition and Installation Project

On July 20, 2005, the Chinese Government and the Government of Turkmenistan signed a preferential loan framework agreement for the Gas Field Drilling Equipment Acquisition and Installation Project. Then, on May 18, 2006, China Eximbank and the State Bank for Foreign Economic Affairs of Turkmenistan signed an RMB 200 million government concessional loan (GCL) agreement for the Gas Field Drilling Equipment Acquisition and Installation Project. The borrowing terms of the GCL are unknown. However, it is known that the borrower was to use the proceeds of the GCL to finance an RMB 200 million commercial contract between China Petroleum Technology & Development Corporation (CPTDC), a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), and a Turkmen state-owned enterprise called “Turkmengeologiya." The purpose of this project was to facilitate (a) the design and construction of a water cooling and softening unit and pumping stations at the headworks-2 of the Dovletabat gas field-3; (b) the supply of component equipment for a Chinese-made ZJ70D drilling rig; (c) the supply of drilling equipment for the reconstruction of three Russian RUZD86 drilling rigs and the supply of one Chinese-made ZJ70D drilling rig for Turkmengeologiya; and (d) the supply of seven Chinese-made XJ250 lift units and spare parts for a Turkmen state-owned oil company called Turkmeneft (or Türkmennebit or TurkmenOil). AidData has not identified any evidence of this project reaching implementation. However, in May 2016, Turkmengeologiya re-announced an international tender for the supply of off-site and drilling equipment (that would be financed with the proceeds of a concessional loan from the Chinese Government).

Additional details

1. This project is also known as the Dauletabad-3 Gas Deposit Drilling Equipment Project, the Dowletabat-3 Gas Deposit Drilling Equipment Project, and the Daulatabad-3 Gas Deposit Drilling Equipment Project. The Russian project title is закупки современных пассажирских вагонов для Министерства железнодорожного транспорта Туркменистан. 2. The Dauletabad–Sarakhs–Khangiran pipeline (also known as Dauletabad–Salyp Yar pipeline) is a natural gas pipeline from the Dauletabad gas field in Turkmenistan to Khangiran in Iran, where it is connected with the Iran Gas Trunkline system. It is significant as it has allowed for the diversification of Turkmenistan's gas export routes, doubling the nation's export of gas to Iran. The decision to build the pipeline was made in July 2009. The pipeline was completed in October 2009 and was inaugurated on January 6, 2010. The total length of the pipeline is 182 km. It starts at the Dauletabad gas field where it branches off from the Dovletabad–Deryalyk pipeline (Central Asia – Center gas pipeline system). It runs 30.5 km (19.0 mi) to Sarakhs, where it crosses the Iran–Turkmenistan border. From there, the 35-km (22 mi) long section transports gas to the Shahid Hasheminejad (Khangiran) Gas Refinery in Khangiran, Khorasan Province.”

Number of official sources

3

Number of total sources

21