Related News
CNPC seals bank deal
By Fu Chenghao |
September 10, 2009, Thursday
|
Print Edition
Print Edition
CHINA National Petroleum Corp yesterday said it has sealed a five-year, US$30 billion loan from a state bank to fund "rapid overseas business expansion."
China Development Bank, one of the nation's policy lenders responsible for raising funds for large infrastructure projects, will provide favorable interest rate on the loan. But CNPC didn't specify the rate or which projects will be financed by the loan.
The agreement underscores China's effort to expand overseas to secure long-term energy supply as it takes advantage of the depressed oil prices and diversifies its foreign exchange reserves.
"This is of great importance for CNPC to speed up its internationalization strategy and safeguard the nation's energy supplies," CNPC President Jiang Jiemin said in a statement.
The bank has also provided financing to CNPC, parent of PetroChina Co, for its oil deals with Russia, projects with Venezuela, acquisitions in Kazakhstan and gas pipeline construction in central Asia.
The loan deal was secured as CNPC dropped a US$466 million takeover bid for Verenex Energy Inc, a Canadian firm which is exploring for oil in Libya, after the North African nation didn't approve the deal.
CNPC has confirmed it canceled the offer, and Verenex said on Tuesday that it is in talks on a possible sale to a Libyan fund.
"While we're somewhat disappointed as Libya offers excellent frontier exploration potential for China, we're also glad that CNPC did exercise good valuation discipline and not be forced to accept harsh government terms just to secure long term deals," Mirae Asset Securities analyst Gordon Kwan said.
Meanwhile, CNPC has reportedly proposed to offer up to US$14.5 billion for a controlling stake in Spanish oil firm Repsol YPF SA's Argentine unit, a deal which would be China's largest overseas takeover, but the Chinese firm has refused to comment.
China Development Bank, one of the nation's policy lenders responsible for raising funds for large infrastructure projects, will provide favorable interest rate on the loan. But CNPC didn't specify the rate or which projects will be financed by the loan.
The agreement underscores China's effort to expand overseas to secure long-term energy supply as it takes advantage of the depressed oil prices and diversifies its foreign exchange reserves.
"This is of great importance for CNPC to speed up its internationalization strategy and safeguard the nation's energy supplies," CNPC President Jiang Jiemin said in a statement.
The bank has also provided financing to CNPC, parent of PetroChina Co, for its oil deals with Russia, projects with Venezuela, acquisitions in Kazakhstan and gas pipeline construction in central Asia.
The loan deal was secured as CNPC dropped a US$466 million takeover bid for Verenex Energy Inc, a Canadian firm which is exploring for oil in Libya, after the North African nation didn't approve the deal.
CNPC has confirmed it canceled the offer, and Verenex said on Tuesday that it is in talks on a possible sale to a Libyan fund.
"While we're somewhat disappointed as Libya offers excellent frontier exploration potential for China, we're also glad that CNPC did exercise good valuation discipline and not be forced to accept harsh government terms just to secure long term deals," Mirae Asset Securities analyst Gordon Kwan said.
Meanwhile, CNPC has reportedly proposed to offer up to US$14.5 billion for a controlling stake in Spanish oil firm Repsol YPF SA's Argentine unit, a deal which would be China's largest overseas takeover, but the Chinese firm has refused to comment.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
