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Overview

China Development Bank provides a $2.9 billion USD loan to Addax Petroleum Corporation to support its overseas oil and gas development activities and financing structure optimization

Commitments (Constant USD, 2023)$4,023,221,532
Commitment Year•2009Country of Activity•SwitzerlandDirect Recipient Country of Incorporation•CanadaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • Addax Petroleum Corporation

Loan description

China Development Bank provides a $2.9 billion USD loan to Addax Petroleum Corporation to support its overseas oil and gas development activities and financing structure optimization

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2009, China Development Bank Corporation (CDB) provided a $2.9 billion USD loan to Addax Petroleum Corporation, a Geneva, Switzerland-headquartered but Canada-incorporated oil and gas company wholly owned by Mirror Lake Oil and Gas Company Limited, a Canada-incorporated special purpose vehicle and indirect wholly-owned subsidiary of Sinopec International Petroleum Exploration and Production Corporation (SIPC), itself a wholly owned subsidiary of Chinese state-owned Sinopec Limited. The proceeds of the CDB loan were to be used to support of overseas oil and gas development activities and financing structure optimization of Addax. The $2.9 billion CDB loan achieved a 100% disbursement rate by the end of 2014. CDB identifies its $2.9 billion loan as supporting “Tranche II” of Sinopec's, implying a “Tranche 1”. The first tranche was likely the 2009 $5.43 billion overseas investment loan from China Eximbank and CDB (Record ID#93314) that was used by Mirror Lake Oil and Gas to acquire a 100% stake in Addax. Addax Petroleum Corporation is an international oil and gas exploration and production company, owning assets in West Africa and Kurdistan, Iraq. It has two blocks in Iraq with a total of 138,200 acres of oil resources and assets in Nigeria, Gabon, and Cameroon, and four joint venture projects in Nigeria’s Sao Tome and Principe Cooperation Development Zone. In total, it had 25 exploration and development blocks, including 15 exploration blocks and 10 development blocks; 17 are located offshore and the remaining 8 are offshore. For the second quarter of 2009, it produced an average of 143,000 barrels of crude oil per day.

Staff comments

1. The Chinese project title is 加拿大ADDAX股权收购 or 中石化第二批海外油气融资再安排项目. 2. While it is evident this loan was committed between 2009 (when Addax was acquired) and December 31, 2014 (when it had achieved a 100% rate). As tranches are often provided soon thereafter each other and this was Tranche II to a (likely) Tranche 1 that was provided in 2009, AidData has assumed the $2.9 billion USD loan was committed in 2009, but has marked the commitment_date_estimated? field as Tranche II. 3. AidData has marked the project_status field as Completion as all financing was disbursed.