Bank of China contributes to $500 million syndicated pre-export financing facility with JSC Turgai Petroleum (Linked to Project ID#54527)

In October 2011, JSC Turgai Petroleum (Russian: «Тургай Петролеум») — a special purpose vehicle that is jointly owned by China National Petroleum Corporation (66.6% equity stake) and KazMunayGaz (33.3% equity stake) — signed a $500 million syndicated pre-export financing loan facility agreement. Five lenders participated in the syndicate: Bank of China (London), BNP Paribas (Suisse), Citibank (Kazakhstan), Deutsche Bank (Amsterdam) and Raiffeisen Bank International. The borrowing terms of the loan were as follows: 5-year maturity and 3.445% annual interest rate (LIBOR plus a 2.85% margin). The loan with secured with (collateralized against) the supply/sale of 2 million metric tons of crude oil to China distributed through the Atasu-Alashankou pipeline. The construction of the Atasu-Alashankou Section of Kazakhstan-China Oil Pipeline Project was supported by an ICBC loan (captured via Project ID#54527).

Additional details

1. Some sources indicate that JSC Turgai Petroleum, which operates the Kumkol North and East Kumkol fields in the South Turgai basin, is jointly owned by PetroKazakhstan (50% equity stake) and Lukoil (50% equity stake). Other sources indicate that JSC Turgai Petroleum is jointly owned by PetroKazakhstan (50% equity stake) and KVK-Petroleum (50% equity stake). 2. The authorized arranger of the loan was the Bank of China (London). 3. In 2012, JSC Turgai Petroleum’s production volume amounted to 2.14 million tons of oil and 146 million cubic meters of marketable gas. 4. Bank of China’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($100 million) across the five members of the loan syndicate. 5. AidData has estimated the all-in interest rate by adding 2.85% to the average 6-month LIBOR rate in October 2011 (0.595%).

Number of official sources

4

Number of total sources

9