China, the world”s second-biggest energy consumer, will lend US$10 billion to Kazakhstan in return for a stake in an oil producer in the Central Asian country.
China National Petroleum Corp. and KazMunaiGaz National Co. will buy AO Mangistaumunaigas, in accordance with the one of 11 agreements that were signed by Chinese President Hu Jintao and his Kazakh Kazakhstan counterpart Nursultan Nazarbaev in Beijing on APril 16. The US$10 billion aid comprises a US$5 billion loan from the Export- Import Bank of China to the Development Bank of Kazakhstan and another US$5 billion from China National to KazMunaiGaz.
State-run China National and KazMunaiGaz plan to expand partnership in the oil and gas industry. The nations also signed an initial accord to build a “road transport channel” linking western China and Europe. No details were provided. Other agreements include accords to cooperate in agriculture, education, finance and telecommunications.
Kazakhstan, the biggest energy producer in the former Soviet Union after Russia, is spending 2.2 trillion KZT (US$14.6 billion), or 14% of gross domestic product, to prevent the first economic contraction in a decade.
Nazarbayev is visiting Beijing before attending the Boao Forum, a regional economic summit held on the southern Chinese island of Hainan.
China National is the parent of Hong Kong-listed PetroChina Co.
