CDB provides $1.71 billion loan to acquire rights to develop Karazhanbas oil and gas field in Mangistau Oblast

In December 2006, China Development Bank (CDB) made a $1.71 billion loan disbursement to CITIC Group — a Chinese state-owned investment company — to facilitate its acquisition of a 100% ownership stake in Nations Energy Company Ltd., a company incorporated in Alberta, Canada that held a 94.6% ownership stake in JSC Karazhanbasmunai, and a 100% ownership stake in Argymak TransService LLP, and a 100% ownership stake in Tulpar Munai Service LLP (collectively referred to as the “CCPL Group”). The principal activities of the CCPL Group are the exploration, development and production of oil and gas from the Karazhanbas field in the Mangistau Oblast.of Western Kazakhstan. Then, on December 29, 2006, CITIC Canada Energy Limited (CCEL) — a subsidiary of Renowned Nation Limited (RNL) — acquired a 100% ownership stake in Nations Energy Company Ltd. for $1,910,000,000 (HK$14,898,000,000). On December 29, 2006, CCEL also granted an option, effective on the same date, to JSC National Company KazMunaiGaz (KMG), a state-owned energy company in the Republic of Kazakhstan, to acquire a 50% ownership stake in CCPL. CITIC Netherlands Energy Coöperatief U.A., a wholly-owned subsidiary of Renowned Nation Limited (RNL), proposed to enter into a sale and purchase agreement with State Alliance Holdings Limited (State Alliance), a wholly-owned subsidiary of CITIC Group, to dispose of its 50% interest in CCEL.

Additional details

1. The Chinese project tile is 中信集团收购加拿大内森斯能源公司哈萨克斯坦石油项目. 2. Nations Energy Company Ltd. is now known as CITIC Canada Petroleum Limited (CCPL). It was incorporated in Canada on 19 April 1996 under the Business Corporations Act of Alberta, Canada. 3. JSC Karazhanbasmunai (KBM), a joint stock company incorporated under the laws of Kazakhstan, is engaged in the development and production of oil and holds the right to explore, develop and produce oil in the Karazhanbas oilfield in Kazakhstan until 2020. The quality of oil produced from the Karazhanbas oilfield is typically 19 degree API. Argymak Trans Service LLP (ATS) which provides transportation services and Tulpar Munai Services LLP (TMS) which provides drilling, workover and training services. 4. Renowned Nation Limited is a company incorporated in the British Virgin Islands and a direct wholly-owned subsidiary of CITIC Group.

Number of official sources

2

Number of total sources

8