CNPC Inked US$5 BLN Loan-for-Oil Deal with KMG     

China National Petroleum Corporation (CNPC) signed in Beijing a framework agreement with Kazakh state oil and gas company KazMunaiGas (KMG) on promoting oil and natural gas cooperation and in supporting to lend US$5 billion to KMG on April 16th.
   The two companies intend to jointly purchase a 49% stake in Kazakhstan-based MangistauMunaiGaz (MMG), whose 100% stake is held by Central Asia Petroleum. On the same day, CNPC and KMG together entered into an acquisition agreement with Central Asia Petroleum. No details about the agreements were disclosed by CNPC, till April 20th.
   MMG holds 36 gas fields, 15 of which are being developed, with recoverable reserves of 194 million tons.
   These agreements were inked during Kazakh President Nursultan Nazarbayev's visit to China.
   Entering into Kazakhstan since 1997, CNPC now operates five oilfield development projects (CNPC AktobeMunaiGas, North Buzachi, PK, KAM and ADM) in the country, two exploration projects, the Kazakhstan-China Crude Oil Pipeline and the Northwest Crude Pipeline.
   China has inked loan-for-oil deals with four countries this year including the above mentioned one.
   On February 17th, China and Russia entered into an agreement on US$25 billion loan for 15 million tons of crude oil per year from 2011 to 2030.
   On February 18th, China and Venezuela signed a dozen agreements, including one on doubling a joint investment fund to US$12 billion. And Venezuela's oil exports to China would increase to 500 000 barrels a day in 2010, and reach 1 million barrels a day by 2012. CNPC has been nodded for a joint venture refinery in Guangdong province to process crude oil sourced from Venezuela.
   Also this February, China and Brazil entered into agreements on US$10 billion loan for oil imports of ranging 100 thousand barrels to 160 thousand barrels per day, of which roughly 60% for Sinopec Group and the remaining for CNPC. (CCR2009 No. 10, No. 8, No.7, No. 6)