Active Development AidData Chinese Aid

China Eximbank provides RMB 350 million government concessional loan for Oil Drilling Rigs Acquisition Project

¥350M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Syrian Petroleum Company
Country	Syrian Arab Republic
Start Date	Nov 12, 2008
End Date	Jun 21, 2033
Duration	8,987 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65095`

Grant Description

China Eximbank provides RMB 350 million government concessional loan for Oil Drilling Rigs Acquisition Project According to a dataset of foreign-financed projects that the Syrian Planning Commission provided to UNDP Syria in May 2011, China Eximbank and Syrian Petroleum Company (叙利亚石油公司) — a state-owned oil company in Syria — signed an RMB 350 million government concessional loan (GCL) agreement in 2008 (signed November 2008, ratified March 2009) for the Oil Drilling Rigs Acquisition Project.

This loan was issued following the signature of two separate preferential loan framework agreements (one worth RMB 100 million and other worth RMB 250 million).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 2% interest rate

📅 Maturity12.0833 years

⏳ Grace Period4.5833 years

💹 Interest Rate2%

The borrower (Syrian Petroleum Company) was to use the proceeds of the GCL to finance a $50 million commercial contract that it signed with China Petroleum Technology and Development Corporation (CPTDC) in 2007. According to written correspondence between Mr. Eng.

Omar AL HAMAD (General Manager of the Syrian Petroleum Company) and the Concessional Loan Department of China Eximbank on April 1, 2010, the Government of Syria issued a sovereign guarantee in support of the loan.

The purpose of the project was to purchase seven new oil drilling rigs, four oil drilling repair rigs, and two cement pumping units for use in Deir ez-Zor Governorate (Arabic: مُحافظة دير الزور‎). On June 1, 2010, China Eximbank notified the Syrian Petroleum Company that the GCL had become effective.

Then, in May 2011, the Syrian Planning Commission reported that the implementation of the project was ‘ongoing’ and its expected completed date was December 31, 2012.

📋 Staff Comments

This project is also known as the Project of Purchasing Drilling Rigs, Purchasing Drilling Rigs Project, and the Purchasing Oil Drillers Project. The Chinese project title is 购买钻机及相关石油设备. The Arabic project title is مشروع شراء معدات نفطية حفارات or لتمويل مشروع شراء معدات وحفارات لصالح الشركة السورية للنفط.
It is known that the Chinese Government and Government of Syria signed an RMB 250 million preferential loan framework agreement on November 12, 2008. However, it is not known precisely when the (earlier) RMB 100 million preferential loan framework was signed. This issue merits further investigation.
The estimated maturity, grace period, and interest rate of the loan are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0

📚 Sources & References

CPTDC to Supply SPC with USD 50 million worth of Drilling Equipment
中国向叙利亚提供2.5亿人民币贷款, 228237_Data_Nader_Projects v1, النفط في سورية قرض صيني بقيمة 35 مليون دولار لتمويل صناعة, توقيع قرض ميسر مع الصين لتحسين الخدمات النفطية, للنفط سورية والصين توقعان على قرض ميسر لشراء معدات وحفارات لصالح الشركة السورية, توقيع اتفاقية قرض بقيمة 250 مليون يوان لشراء حفارات نفط, النفط في سورية قرض صيني بقيمة 35 مليون دولار لتمويل صناعة, توقيع قرض ميسر مع الصين لتحسين الخدمات النفطية, للنفط سورية والصين توقعان على قرض ميسر لشراء معدات وحفارات لصالح الشركة السورية, توقيع اتفاقية قرض بقيمة 250 مليون يوان لشراء حفارات نفط, توقيع اتفاقية قرض بقيمة 250 مليون يوان لشراء حفارات نفط, توقيع قرض ميسر مع الصين لتحسين الخدمات النفطية, وزارة النفط في عام 2008 … استكمال مشاريع النفط والغاز وبطء في مشروعات مصافي التكرير
The Project of Purchasing Drilling Rigs
Chinese Government Concessional Loan Agreement regarding the Project of Purchasing Drilling Rigs
Purchasing Drilling Rigs Project under Chinese Government Concessional Loan
李华新大使与叙计划署长签署两国合作协议
Syria Files FW: Projects
中国石油在叙利亚
Parliament Ratifies USD $36 million Chinese Loan
中国驻叙利亚大使李华新应邀赴叙利亚东北部德尔祖尔省考察
CPTDC to Supply SPC with USD 50 million worth of Drilling Equipment
Al-Furat Petroleum Company
中国驻叙利亚大使李华新应邀赴叙利亚东北部德尔祖尔省考察, توقيع قرض ميسر مع الصين لتحسين الخدمات النفطية, دليل شركاء التعاون الدولي
DRS Official Commitments from China Through 2021
IDS_Average interest on new external debt commitments
IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments
The People's Assembly approves a Chinese loan to Syria to invest in the oil sector 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

Syrian Petroleum Company

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