BEIJING, June. 2 (Xinhua) -- China National Offshore
Oil Company Limited (CNOOC Ltd) announced on Friday that its wholly owned
subsidiary, CNOOC China Limited, has signed a loan agreement with Export and
Import Bank of China to fund an oil project in Nigeria.
The 12.8 billion yuan (1.6 billion U.S. dollars) loan
will be used for the company's operations in Nigeria and for general capital
expenditure for other projects, said CNOOC Ltd. in a statement.
With a tenor of 10 years, the loan has its interest
rate fixed at 4.05 percent.
According to CNOOC Ltd, the company has the right of
pre-repayment without any penalty and its debt to capitalization ratio will
still be under 25 percent.
CNOOC Ltd acquired a 45 percent working interest in
an offshore oil mining license "OML 130" in a 2.6 billion U.S. dollar deal
concluded in April.
The proceeds will be used mainly for operations in
Nigeria, said Xiao Zongwei, spokesman of CNOOC Ltd. The interest rate is
favorable because it is a special loan for an overseas project of the China
Export and Import Bank, he added.
Yang Hua, Executive Vice President and CFO of CNOOC
Ltd said CNOOC Ltd has always pursued prudent financial discipline. CNOOC Ltd
believes the loan will further optimize its capital structure and potentially
enhance shareholders' return, said Yang.
Incorporated in Hong Kong, CNOOC Ltd. is a 70.64 percent held subsidiary of China National Offshore Oil Corporation, China's largest offshore oil producer. Enditem
