December 14, 2009 / 7:51 AM / 8 years ago

FACTBOX-China's investments in Central Asian energy

Dec 14 (Reuters) - Chinese leader Hu Jintao was due to open a new gas pipeline from Turkmenistan on Monday, a new milestone in Beijing’s quest for control over the region’s abundant energy resources.

Beijing has stepped up its presence in ex-Soviet Central Asia over past years by handing out billions of dollars in loans, snapping up energy assets and building an oil pipeline from Kazakhstan. [ID:nSGE5BD0BQ]

Below is the list of recent Chinese investments in Central Asia’s energy sector:


China’s state-owned CNPC [CNPET.UL] bought Kazakh oil producer MangistauMunaiGas MMGZ.KZ for $2.6 billion in a joint deal with Kazakh state firm KazMunaiGas [KMG.UL] in November.

MangistauMunaigas, based in the kazakh town of Aktau, has residual oil reserves of 812 million tonnes.

In exchange for securing the asset, China gave Kazakhstan $10 billion in loans to finance various projects -- a much-needed liquidity boost for the Kazakh economy hit hard by the economic crisis.


China has agreed to issue a $4 billion loan to Turkmenistan to develop the Central Asian state’s largest gas field, South Iolotan.

South Iolotan contains between 4 trillion and 14 trillion cubic metres of gas, Britain’s Gaffney, Cline and Associates said in 2008 -- making it one of the world’s five largest deposits.


China’s Sinochem Corp is near a $320 million deal to buy Kazakh independent oil company Sumbe, industry sources told Reuters in November.

Sumbe SUMB.KZ produces about 4,000 barrels per day of oil and holds a remaining recoverable oil reserve of some 66 million barrels.


China Investment Corp (CIC) bought an 11 percent stake in KazMunaiGas Exploration and Production (KazMunaiGas EP) (KMGq.L), an upstream arm of Kazakh state energy firm KazMunaiGas [KMG.UL], for $939 million in October.

KazMunaiGas EP produced 12 million tonnes of oil in 2008 and is one of Kazakhstan’s top three producers. The total volume of its proved and probable reserves, as at the end of 2008, is 241 million tonnes (1.8 billion barrels).


China Guandong Nuclear Power Co (CGNPC) said in April it would develop a new uranium deposit in Kazakhstan with reserves of 40,000 tonnes together with Kazakh state firm Kazatomprom.

China plans to import a total of 24,200 tonnes of Kazakh uranium between 2008 and 2012, it said.


State-owned investment group CITIC bought the Kazakh oil assets of Canada-based Nations Energy Co. Ltd. for $1.9 billion in 2006.

The cornerstone of those assets was the Karazhanbas oil and gas field, which has proven reserves of more than 340 million barrels and production of over 50,000 barrels per day.


CNPC International paid $3.96 billion to acquire a 33 percent stake in Kazakh oil producer PetroKazakhstan in 2005. (Editing by Jerry Norton)

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