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CNPC to lend Kazakh State oil company $5b for oil assets

(Xinhua)
Updated: 2009-04-17 18:06

China National Petroleum Corp (CNPC), China's largest oil producer, said Friday it would lend $5 billion to the Kazakh State oil company.

Related readings:  CNPC expands oil and gas business to 29 countries  China starts oil field project in Iraq  CNPC crude output seen lower in 2009 as demand weakens  CNPC turns PetroKazakhstan around

CNPC said the loan to KazMunaiGas would be used for the joint purchase of a local company, MangistauMunaiGas, a major oil developer in Kazakhstan.

KazMunaiGas agreed in January to buy 52 percent of MangistauMunaiGas.

Terms of the loan were not disclosed.

China has signed other, similar loan-for-oil deals this year.

In February, it agreed with Russia on a long-term loan of $25 billion in exchange for 300 million tons of oil piped from Russia between 2011 and 2030.

Brazil agreed in February to supply 60,000 to 100,000 barrels of crude per day to Chinese refineries, along with an agreement for a $10-billion loan from the China Development Bank.