ICBC provides RMB 40 million export seller’s credit to Sinopec for Oil Refinery Upgrading Project

Project narrative

On January 13, 2001, Industrial and Commercial Bank of China (ICBC) issued an export seller’s credit worth RMB 40 million to China Petroleum & Chemical Corporation ("Sinopec") for an Oil Refinery Upgrading Project in Iran. The proceeds were to be used by the borrower to partially finance a commercial contract worth RMB 200 million for the Oil Refinery Upgrading Project. This credit agreement was insured by People's Insurance Company of China (中国人民保险集团). The project was part of a larger Caspian Sea Republics' Oil Swap (CROS) initiative, which involved the transportation of oil by pipeline from the port of Neka to the Tehran refinery and to the Tabriz refinery in northwest Iran. National Iranian Oil Co. awarded that turnkey CROS contract to the SVF Consortium, made up of Sinopec Engineering, Vitol SA, and Federal Asia Co. Ltd. The CROS initiative also involved the provision of storage & blending facilities at the Caspian port of Neka, Iran, the provision of blending facilities at Rey terminal near Tehran, the construction of three LPG treating units and one LSRN treating unit, and the modification of the Tehran and Tabriz refineries. Phase 1 implementation commenced in 2001 and it was officially completed on November 29, 2003.