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CNPC Finance (HK) Limited provides loan for acquisition of 25% equity stake in West Qurna-1 oil field from ExxonMobil
| Funder | CNPC Finance (HK) Limited |
|---|---|
| Recipient Organization | PetroChina International Iraq FZE |
| Country | Iraq |
| Start Date | Jan 01, 2013 |
| End Date | Jun 11, 2029 |
| Duration | 6,005 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 95945 |
Grant Description
CNPC Finance (HK) Limited provides loan for acquisition of 25% equity stake in West Qurna-1 oil field from ExxonMobil In 2013, CNPC Finance (HK) Limited issued a loan to PetroChina International Iraq FZE — a local subsidiary of CNPC — to facilitate its acquisition of a 25% equity stake in the West Qurna-1 oil field from ExxonMobil Limited.
However, it is known that the borrower used the proceeds from the acquisition loan to purchase a 25% equity stake in the West Qurna-1 oil field (project) of ExxonMobil Iraq Limited for $590 million (approximately RMB 3.658 billion) on December 2, 2013. The West Qurna field is one of Iraq's largest oil fields and is located north of Rumaila field, west of Basra.
West Qurna-1 was originally expected to produce around 600,000 barrels of oil per day.
The field, launched in 2010, was jointly owned by ExxonMobil (with a majority 60% stake), an Iraqi state-run oil company, and Shell prior to the December 2, 2013 acquisition. CNPC’s equity stake increased to 32.7% in April 2014.
The project’s equity structure changed in May 2018 (ExxonMobil—32.7%, CNPC—32.7%, ITOCHU—19.6%, Pertamina—10%, Oil Exploration Company of Iraq—5%). In January 2024, ExxonMobil formally handed over operations to PetroChina as the lead contractor.
The project's equity structure as of January 2024: PetroChina 32.7%; Basra Oil Company (BOC) 22.7%; Itochu 19.6%; Pertamina 20%; and Oil Exploration Company 5%.
Staff Comments
- The face value of the CNPC Finance (HK) Limited loan is unknown. However, given that the total cost of the acquisition was $590 million and most Chinese acquisition loans cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the CNPC Finance (HK) Limited loan was roughly equivalent to $413 million. This issue warrants further investigation.
- CNPC Finance (HK) Limited (CPFHK) is a wholly-owned subsidiary of CNPC.
Sources & References
- CNPC FINANCE (HK) LIMITED 2013 ANNUAL REPORT
- Overview of CNPC Operations in Iraq
- CNPC in Iraq Sustainability Report
- China's loans for oil: Asset or liability?
- Update on Overseas Investments by China’s National Oil Companies
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 20-F
- Annual Report 2018
- Herbert Smith Freehills advises Petrochina Company Limited on 25% stake acquisition in West Qurna 1 Field from Exxon
- U. S. Securities and Exchange Commission
- PetroChina Takes Over as Operator of West Qurna 1
- ExxonMobil’s departure from Iraq’s West Qurna 1: A shift in global energy dynamics
- ExxonMobil hands over operations at West Qurna 1 oilfield to PetroChina
- China's CNPC replaces U.S. oil giant as lead contractor for Iraq's West Qurna 1 oilfield
- ExxonMobil Form 10-K
- West Qurna 1 Oil Production Project in the Republic of Iraq, تحليل مسارات الدين العام للمدة من 2010 الى 2014 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
PetroChina International Iraq FZE
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