Completed Commercial AidData Chinese Aid

China Eximbank provides $3 billion loan for acquisition of JSC Mangistaumunaigas

$3M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Mangistau Investments B.V. (MIBV)
Country	Kazakhstan
Start Date	Apr 15, 2009
End Date	May 13, 2032
Duration	8,429 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`39567`

Grant Description

China Eximbank provides $3 billion loan for acquisition of JSC Mangistaumunaigas On April 15, 2009, Mangistau Investments B.V. (MIBV) — a joint venture between Joint Stock Company National Company KazMunayGas (KMG) (50% equity stake) and CNPC Exploration and Development Company Ltd (CNPC E&D) (50% equity stake) — signed a $3.0 billion facility agreement with the Export-Import Bank of China.

MIBV used the proceeds of the loan to acquire a 50 percent ownership stake in the exploration assets of MMG, Kazakhstan’s fifth-largest oil producer, at a purchase price of $2.6 billion. This acquisition was completed on November 25, 2009. CNPC E&D, a Chinese government-owned oil and gas producer, acquired the other 50 percent ownership stake.

The transaction included the acquisition of oil and gas fields in Kalamkas and Zhetybai, as well as other upstream and exploration assets, including licenses to explore and develop over 15 other oil and gas fields in Kazakhstan and the Caspian region. It was approved by, inter alia, the European Commission and local anti-monopoly authorities.

The China Eximbank loan carried interest at a rate of one-month LIBOR (0.461% in April 2009) plus a 3.5 percent margin and it matured on May 31, 2019. However, due to high oil prices, MIBV repaid the China Eximbank loan ahead of schedule in July 2013.

📋 Staff Comments

Mangistau Investments B.V. (“MIBV”) is a joint venture between Joint Stock Company National Company KazMunayGas (KMG) and CNPC Exploration and Development Company Ltd (“CNPC E&D”), with each partner having a 50 percent ownership stake.
JSC Mangistaumunaigas (MMG) is one of the major oil-producing companies in Kazakhstan. The company has 36 oil and gas deposits, 15 of them are under development. The largest deposits in terms of reserves are Kalamkas and Zhetybai. MMG is owned by Mangistau Investments B.V. (“MIBV”), a jointly-controlled entity between KMG and CPNC Exploration and Development Company Ltd (“CNPC E&D”), with each partner having a 50 percent interest. KMG acquired its interest in MMG on November 25, 2009. MMG is one of Kazakhstan’s largest oil producers and operates the Kalamkas Field, one of the largest fields in Kazakhstan, pursuant to a Subsoil Use Agreement that expires in 2027.
CNPC E&D is a joint venture equally owned by PetroChina and China National Oil & Gas Exploration and Development Corporation, subsidiaries of CNPC.
Multiple sources suggest that CNPC provided a $1.7 billion loan to KazMunaiGas NC JSC in 2009. This issue requires further investigation.

📚 Sources & References

Chinese President Hu Jintao met with President of Kazakhstan Nursultan Nazarbayev
中国100亿美元贷款打通哈萨克能源产业链, 8-中国企业2009年海外油气上游投资概述
China throws Kazakhstan economic lifeline
China Makes Strides in Energy “Go-out” Strategy
China inks oil deal with Kazakhstan
UPDATE: China expands in Kazakhstan with MangistauMunaiGaz buyout
Kazakhstan expects more deals with Chinese firms
China and Kazakhstan: Economic Hierarchy
Dependency and Political Power
Status of pipeline projects in Kazakhstan as of December 2014
CNPC and KazMunayGas acquire 100% of MangistauMunaiGas shares through open trade on Kazakhstan Stock Exchange
Kazakh-Chinese Mangistau Investments pays off China Exim Bank's loan early
Kazakh-Chinese enterprise pays off Exim Bank’s loan (UPDATE)
KAZAKHSTAN: CHINA NATIONAL PETROLEUM CORPORATION ACQUIRES 50 PERCENT STAKE IN MANGISTAUMUNAIGAS
Registration Statement PetroChina Company Limited
CNPC and Kazmunaygas Take Over Mangistaumunaigas
National Company KazMunayGas acquires 100% of common shares KZ1C05020017 (MMGZ) of Mangistaumunaygas (Kazakhstan)
Mangistaumunaigas pays off external loan
KazMunaiGaz Finance Sub B.V. Base Prospectus
Annual Report 2009
China: a new model in overseas oil strategy
Special Report_ China using loan packages to secure oil supplies
Chinese Investment in the Greater Europe Zone
Central Asia and the Caucasus: At the Crossroads of Eurasia in the 21st Century
Central Asia’s Oil and Gas Reserves: To Whom Do They Matter?
Big World
Big Deals: Beer and Gas--At the Same Time!
King & Wood Mallesons Brings Aboard Former Dewey Partner in Beijing
China
Kazakhstan Sign Loan-for-Oil Deal
China Lends Abroad to Ease Oil Deals
China lends crisis-hit Kazakhstan $10 bln
Skadden and Norton Rose secure 3bn energy sale in Kazakhstan
CNPC buys Kazakh oil company
CNPC to lend Kazakh state oil firm US$5B
China's largest oil producer to lend $5 bln to Kazakhstan for oil assets Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Mangistau Investments B.V. (MIBV)

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