Completed Mixed AidData Chinese Aid

China Eximbank provides $177.6 million preferential buyer’s credit to UzbekNefteGaz for acquisition of oil rig equipment

$177.6M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	JSC Uzbekneftegaz
Country	Uzbekistan
Start Date	Apr 06, 2007
End Date	Dec 19, 2030
Duration	8,658 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`40068`

Grant Description

China Eximbank provides $177.6 million preferential buyer’s credit to UzbekNefteGaz for acquisition of oil rig equipment On April 6, 2007, the Export-Import Bank of China signed a $177,601,952 preferential buyer’s credit (PBC) agreement with UzbekNefteGaz — a state-owned oil and gas company in Uzbekistan — for the acquisition of large-scale oil rigs, 3D seismic exploration equipment, cement trucks, and other specialized equipment.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: a 15

📅 Maturity15.75 years

⏳ Grace Period5 years

💹 Interest Rate3.5%

Its final maturity date is January 2023.

The proceeds of the PBC were to be used by the borrower to finance 85% of the cost of (a) a commercial contract between Uzgeoburneftegaz (a subsidiary of Uzbekneftegaz) and China Petroleum Technology & Development Corporation, which was signed on April 6, 2007; and (b) a commercial contract between Uzgeoburneftegaz and China National Machinery Industry Corporation (for the supply of 10 cementers), which was signed on April 6, 2007.

The combined monetary value of these two commercial contracts was $209.1 million.

The remaining commercial contract costs ($31.5 million) that were not covered by the PBC were to be directly funded by Uzbekneftegaz.

In September 2009, China Petroleum Technology & Development Corporation and China National Machinery Industry Corporation (SINOMACH) successfully delivered 23 drilling rigs, four cranes, and 10 cementing units (collectively worth $209.1 million).

📋 Staff Comments

The Russian project title is Оснащение предприятий НХК «Узбекнефтегаз» буровыми установками и сейсморазведочными комплексами 3Д.
The consolidated financial statements of JSC “Uzbekneftegaz”, which can be accessed in their entirety via https://www.dropbox.com/s/ns0xcdtkfpin07x/21ef5dee9dfe4403a789c52c07e422f8.pdf?dl=0, identify the face value of the PBC as $172 million. This issue warrants further investigation.
This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.

📚 Sources & References

Uzbekistan gets drilling equipment from Chinese companies
Chinese companies supply drilling equipment to Uzbekistan
China begins to supply drilling rigs to Uzbekneftegaz
China will deliver $209 million worth of equipment to Uzbekistan
油气设备出口
中国汽车工业进出口公司向乌兹别克斯坦出口10台水泥泵车顺利交货, ОБ ИНВЕСТИЦИОННОЙ ПРОГРАММЕ РЕСПУБЛИКИ УЗБЕКИСТАН НА 2008 ГОД
BU_PITCH_ENGLISH_2018.xlsx
ON MEASURES FOR THE IMPLEMENTATION OF THE INVESTMENT PROJECT 'EQUIPPING THE ENTERPRISES OF NHC UZBEKNEFTEGAZ WITH DRILLING RIGS AND 3D SEISMIC COMPLEXES'
ON MEASURES FOR THE IMPLEMENTATION OF THE INVESTMENT PROJECT 'EQUIPPING THE ENTERPRISES OF NHC UZBEKNEFTEGAZ WITH DRILLING RIGS AND 3D SEISMIC COMPLEXES'
JSC “Uzbekneftegaz” Consolidated financial statements
JSC “Uzbekneftegaz” Consolidated financial statements 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

JSC Uzbekneftegaz

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