Financing of oil companies in
Burma
A research paper prepared for Arakan Oil Watch
Financing of oil companies in Burma
A research paper prepared for Arakan Oil Watch
DRAFT: 31 July 2017
Jan Willem van Gelder
Howard Law
Profundo
Radarweg 60
1043 NT Amsterdam
The Netherlands
Tel: +31-20-8208320
E-mail: [email protected]
Website: www.profundo.nl
Contents
Summary ..................................................................................................................... i
Introduction................................................................................................................ 1
Chapter 1
Description of the oil projects ........................................................ 2
1.1
BLOCK M .................................................................................................. 2
1.1.1
Overview .................................................................................................... 2
1.1.2
Companies involved ................................................................................... 2
1.2
Shwe Reserve ........................................................................................... 2
1.2.1
Overview .................................................................................................... 2
1.2.2
Companies involved ................................................................................... 3
1.3
Arakan-Yunnan Pipeline .......................................................................... 3
1.3.1
Overview .................................................................................................... 3
1.3.2
Companies Involved ................................................................................... 4
Chapter 2
Financing of CNPC / PetroChina .................................................... 5
2.1
Introduction .............................................................................................. 5
2.2
Shareholdings .......................................................................................... 5
2.3
Loans ........................................................................................................ 5
2.4
Share issuances ....................................................................................... 6
2.5
Bond issuances........................................................................................ 6
Chapter 3
Financing of CNOOC ....................................................................... 7
3.1
Introduction .............................................................................................. 7
3.2
Shareholdings .......................................................................................... 7
3.3
Loans ........................................................................................................ 7
3.4
Share issuances ....................................................................................... 7
3.5
Bond issuances........................................................................................ 7
Chapter 4
Financing of Daewoo International ................................................ 9
4.1
Shareholdings .......................................................................................... 9
4.2
Loans ........................................................................................................ 9
4.3
Share issuances ....................................................................................... 9
4.4
Bond issuances........................................................................................ 9
Chapter 5
Financing of ONGC (Oil & Natural Gas Corporation Limited) ... 10
5.1
Introduction ............................................................................................ 10
5.2
Shareholdings ........................................................................................ 10
5.3
Loans ...................................................................................................... 10
5.4
Share issuances ..................................................................................... 10
5.5
Bond issuances...................................................................................... 10
Chapter 6
Financing of Myanmar Oil and Gas Enterprise ........................... 11
6.1
Loans ...................................................................................................... 11
6.2
Share issuances ..................................................................................... 11
6.3
Bond issuances...................................................................................... 11
Chapter 7
Financing of Korea Gas Corporation ........................................... 12
7.1
Shareholdings ........................................................................................ 12
7.2
Loans ...................................................................................................... 12
7.3
Share issuances ..................................................................................... 13
7.4
Bond issuances...................................................................................... 13
Chapter 8
Financing of Gas Authority of India Limited (GAIL) ................... 14
8.1
Shareholdings ........................................................................................ 14
8.2
Loans ...................................................................................................... 14
8.3
Share issuances ..................................................................................... 14
8.4
Bond issuances...................................................................................... 14
Chapter 9
Golden Aaron ................................................................................. 16
9.1
Loans ...................................................................................................... 16
9.2
Share issuances ..................................................................................... 16
9.3
Bond issuances...................................................................................... 16
Appendix 1
References ..................................................................................... 17
Summary
The objective of this research project is to identify the financial institutions that are involved in
financing the companies undertaking two major oil and gas projects in Burma. These projects
are known as Block M and the Shwe Reserve (including the Arakan-Yunnan Pipeline).
The consortium companies undertaking the Block M project have a production sharing
contract with Burma’s 100% state-owned Myanmar Oil & Gas Enterprise (Burma). The
consortium includes Chinese and Singaporean companies: CNOOC (China), CNPC (China)
and Golden Aaron (Singapore).
The consortium companies undertaking the Shwe Reserve project initially included Daewoo
International (South Korea) that signed a production sharing contract with MOGE for these
blocks. Later on other companies joined in the investment in the Shwe Reserve project:
ONGC Videsh (India), Korea Gas Corporation, (South Korea) and Gas Authority of India
(India). CNUOC (a subsidiary of CNPC) signed a contract for the construction of the ArakanYunnan pipeline and the export of the gas with the Shwe consortium partners.
This research project sets out the relationship of the financial institutions to the consortium
companies of these projects through shareholdings, loans or through the underwriting or
participation in share and bond issuances.
Current shareholdings of financial institutions in the consortium companies represent an
indirect investment by the institutions in those companies. In most cases the shareholdings
represent funds that are invested on behalf of third parties via investment funds. As fund
managers the financial institutions have a relationship with the consortium companies but
they are not directly accountable for the eventual investment of funds in the gas and oil
projects in Burma by the consortium companies.
The provision of loans by financial institutions or the underwriting of bond and share
issuances for the consortium companies represent direct investments in those companies.
The financial institutions can be held accountable for these investments. In this research
project we concentrate on the funds that are provided by the financial institutions via loans
and issuances for general corporate purposes. These funds can possibly be utilised for the
oil and gas project activities in Burma. Loans and issuances earmarked for specific other
projects are not mentioned.
The following overview indicates in which form financial relationship exists between the
financial institutions and the main consortium partners of the two Burma projects: Block M
and the Shwe Reserve.
-i-
Agricultural Bank of China
China
P
AK Capital
India
Allianz
Germany
Almondz Global Securities
India
ANZ Group
Australia
Bank of America
United States
Bank of China
China
L, U, P
U
Bank of Communications
China
L, U, P
U
Bank of Nova Scotia
Canada
Bank of Tokyo-Mitsubishi UFJ
Japan
L
Barclays
United Kingdom
S
Barings
United Kingdom
S
Batterymarch Financial
United States
Bayerische Landesbank
Germany
BNP Paribas
France
Calyon (Credit Agricole)
France
L
Capital Group
United States
S
China Construction Bank
China
L, U, P
China Development Bank
China
P
China Securities
China
U
CIC
France
CICC
China
U
U
CITIC
China
L, U, P
U
Citigroup
United States
Commerzbank
Germany
Credit Suisse
Switzerland
Daegu Bank
South Korea
Deutsche Bank
Germany
Development Bank of
Singapore
Singapore
DnB NOR BANK
Norway
U
S
U
L
L
L
S
L
S
S
L
L
L
S
L
S
L
L, U
U
L
U
L
U
L
U
L
L
-ii-
Golden Aaron
S
GAIL
United Kingdom
KOGAS
Aberdeen Asset Management
MOGE
Country of
origin
ONGC
Financial institution
Daewoo International
CNOOC
CNPC
Consortium companies
Financial institution
Country of
origin
Export Import Bank of China
China
Export Import Bank of Korea
South Korea
Everbright Securities
China
Fidelity International
United States
Fortis
Belgium
Goldman Sachs
United States
Hana Bank
South Korea
Hang Seng Bank
Hong Kong
HSBC
United Kingdom
Hyundai Securities
South Korea
ICBC
China
ICICI Bank
India
ING
Netherlands
Jianyin Securities
China
JM Financial
India
JPMorgan Chase
United States
KAMCO
South Korea
Kookmin Bank
South Korea
Korea Development Bank
South Korea
Korea Exchange Bank
South Korea
Kotak Mahindra Capital
India
U
U
Life Insurance Corporation of
India
India
S
S
Merrill Lynch
United States
Mitsubishi UFJ
Japan
L
Mizuho Bank
Japan
L
Morgan Stanley
United States
NACF Bank (Agricultural
Cooperative)
South Korea
L
Nordea Bank
Sweden
L
Norges Bank
Norway
S
Pictet & Cie
Switzerland
S
L
S
U
S
S
L
U
U
L
S
S, L, P
L
U
U
U, P
U
U
L
U
U
U
U
U
S
L
S
L
L
U
U
U
-iii-
L
U
Golden Aaron
GAIL
KOGAS
MOGE
ONGC
Daewoo International
CNOOC
CNPC
Consortium companies
Country of
origin
Principal Financial Group
United States
R.R. Financial Consultants
India
Royal Bank of Scotland
United Kingdom
SBI Capital Markets
India
Shinhan Bank
South Korea
Shinyoung Securities
South Korea
Skandinaviska Enskilda
Sweden
L
Société Générale
France
L
Standard Chartered
United Kingdom
StarCapital Corporation
Bahamas
Sumitomo Mitsui Group
Japan
S
U
U
L
U
L
U
L
L
S
S, U, L
Templeton Asset Management United States
S
UBS
Switzerland
U
United Overseas Bank
Singapore
L
Vanguard Group
United States
S
Woori Financial Group
South Korea
L
U
Key:
S : shareholding, L : loan, U : underwriting or participation in bond- or share issue, P :
principle banker
-iv-
Golden Aaron
Financial institution
GAIL
KOGAS
MOGE
ONGC
Daewoo International
CNOOC
CNPC
Consortium companies
Introduction
This research project tries to identify which financial institutions are involved in financing the
companies undertaking two major oil and gas projects in Burma: Block M and the Shwe
Reserve (including the Arakan-Yunnan Pipeline).
Chapter 1 describes the two oil and gas projects and the companies involved.
Chapters 2 to 9 give for each of the main consortium companies an overview of the financial
institutions investing in those companies based on shareholdings, the provision of loan
facilities and the underwriting of shares and bond issuances.
A summary of the findings of this report can be found on the first pages of this report.
Acknowledgements
This report was written with the financial aide of BankTrack.
-1-
Chapter 1
Description of the oil projects
1.1
BLOCK M
1.1.1
Overview
Oil exploration is currently ongoing in Burma’s Block M, an onshore block in western Burma’s
Arakan (Rakhine) State. Block M is a large onshore area that includes the city of Kyauk Phyu
on Ramree Island, Arakan State. Block M covers 7,788 km2 (3,007 sq miles). No information
is yet available on project value.
A production sharing contract was signed on October 22, 2004 between Burma’s Myanmar
Oil & Gas Enterprise (100% State owned) and a consortium of Chinese and Singaporean
companies (below).1 New York and Hong Kong listed CNOOC Ltd. was designated
managing partner of the block.2 Further details of the contract have not been made public.
Exploratory drilling is underway.3
1.1.2
Companies involved
Consortium partners:4
 CNOOC Myanmar Ltd. (Burma) – direct subsidiary of CNOOC Ltd.
 China Huanqiu Contracting and Engineering Corp. (China) – subsidiary of China
National Petroleum Corporation
 Golden Aaron Pte Ltd. (Singapore)
Others
 CNOOC Ltd. (Hong Kong) – managing partner of Block M
 China Oilfield Services Ltd. (China) – subsidiary of CNOOC Ltd., in 2006 contracted
with CNOOC to provide pre-drilling, drilling fluid, and cementing services for Block M5
 Sichuan Petroleum Geophysical Company (China) – conducting seismic drilling in
Block M6
 Asia World Company (Burma) – building road and providing support for Block M
exploration7
1.2
Shwe Reserve
1.2.1
Overview
The Shwe Reserve is comprised of blocks A-1 and A-3. Both are offshore gas fields located
75-100 kilometres off of the Rakhine Coast. Blocks A-1 and A-3 are estimated to have
between 4.5- 7.7 tcf of recoverable gas combined. It is estimated that the reserve will earn
between $37 and $52 billion USD over a span of 20 years. 8
In August of 2000 Daewoo International signed a Production Sharing Contract with the
MOGE for block A-1. Later, companies joined-in in investing. In February 2004 Daewoo
International signed a Production Sharing Agreement with the MOGE for block A-3. Later,
companies joined-in in investing.
In August 2007 the Burmese Government announced that they would sell gas from blocks A1 and A-3 to China, though nothing formal was ever produced. In June 2008 a Memorandum
of Understanding was signed between CNPC, the Burmese Government, and the Shwe
consortium partners for the sale and transport of gas to China. An export gas agreement was
signed on December 24, 2008 between the Shwe consortium partners and CNUOC, which
will supply China with gas for at least 30 years.9
-2-
Pipeline construction was set to begin in early 2009. Gas is expected to be produced by
2013.10 In December of 2008 China National United Oil Corporation, CNUOC (China), signed
an export gas agreement to purchase the Shwe gas and to build a pipeline to transport the
gas, from Burma to Yunnan.11 CNUOC is a petroleum trading company that is a subsidiary of
CNPC. 12
1.2.2
Companies involved
Consortium partners:13
 Daewoo International- is a Korean company and the operator of both blocks A-1 and
A-3, owning a 51% interest in each.
 ONGC Videsh Limited - OVL (India) - is an Indian firm and a subsidiary of ONGC.
OVL owns 17.5% of both blocks.
 Myanmar Oil and Gas Enterprise - MOGE (China) - state owned MOGE has a 15%
interest in both fields.
 Korea Gas Corporation - KOGAS (South Korea) - a state owned firm with 8.5%
interest in both fields.
 Gas Authority of India Limited - GAIL (India) - a state owned firm with 8.5% interest
in both fields.
Other Contractors:14
 China Oilfield Services Ltd - COSL (China) - Owner of submersible rig which is
stationed off Mya, a well in block A-3.
1.3
Arakan-Yunnan Pipeline
1.3.1
Overview
The Arakan-Yunnan pipeline will be used to transport gas from the Shwe reserve to Kunming
China, in the Yunnan Province. Construction is set to begin in early 2009 and production to
begin in 2013. In addition to the gas pipeline another pipeline will also be constructed to
import crude oil from the Middle East and Africa to Kunming, as well as a central processing
platform, onshore gas terminal, and a deep sea port.
The estimated length of the pipeline is 2,380 km, costing over $1 Billion USD and with a daily
production of 600MMcf/d, when production begins.15
On December 24th 2008 CNUOC and the consortium partners of the Shwe Reserve signed
an export gas agreement, effectively making China the sole purchaser of all the gas in the
reserve. This agreement allows China to build a pipeline, deep seaport, central processing
platform, and onshore gas terminal. China must also pay an annual transit fee of $150 million
USD to the Burmese government for all years that this pipeline is in production. They are
also to provide the Burmese government with $83 million USD, to facilitate in the countries
development of its oil resources.16
Pipeline construction set to begin in early 2009. Gas expected to be produced by 2013.17
In December 2008 China National United Oil Corporation (CNUOC) signed an export gas
agreement to purchase the Shwe gas and to build a pipeline to transport the gas, from
Burma to Yunnan.18 CNUOC is a petroleum trading company that is a subsidiary of CNPC.
-3-
1.3.2
Companies Involved
Consortium Partners:19
 CNUOC (subsidiary of CNPC) - is the majority partner of this project, having a 50.9%
interest in the project.
 MOGE- is partnering with CNPC in the development of the pipeline.
Other Contractors
 Asia World Company- was awarded a contract to construct the deep sea port,
Kyaukphyu, on the Maday Island in 2007.20 Asia World Company is a Burmese firm,
linked with Singaporean, Malaysian, and Chinese interests. 21
 Sinopec- a Chinese firm that in 2007 announced they were to begin construction of the
Arakan-Yunnan Pipeline. 22
-4-
Chapter 2
2.1
Financing of CNPC / PetroChina
Introduction
CNPC is a Chinese state-owned company with a 96% shareholding in Hong-Kong stock
exchange-listed subsidiary PetroChina. 23 The majority of CNPC´s activities outside China
are carried out through PetroChina while domestic activities are carried out by CNPC. But in
Burma PetroChina is not active. The parent company itself, CNPC, is active in the Block M
project and in the construction of the Arakan-Yunnan Pipeline in Burma.24 The gas is sold to
CNUOC, which is a subsidiary of CNPC.
2.2
Shareholdings
In June 2009 the following financial institutions owned more than 0.1% of PetroChina
Company’s total outstanding shares:25








Aberdeen Asset Management
Barclays
Barings
Fidelity International
Hang Seng Bank
HSBC
Templeton Asset Management
Capital Group
2.3
United Kingdom
United Kingdom
United Kingdom
United States
Hong Kong
United Kingdom
United States
United States
0.14%
0.43%
0.14%
0.13%
0.12%
0.12%
0.55%
0.10%
Loans
 In March 2004 Sun World, CNPC’s off-shore investment subsidiary, secured a US$ 100
million five year loan facility from an international banking syndicate. The underwriting
syndicate was led by HSBC (United Kingdom). Seven other banks also participated in this
facility.26
 In March 2009 PetroChina mentioned as its principal bankers:27








Agricultural Bank of China
Bank of China
Bank of Communications
China Construction Bank
China Development Bank
CITIC Industrial Bank
HSBC
Industrial and Commercial Bank of China
-5-
China
China
China
China
China
China
United Kingdom
China
2.4
Share issuances
 In September 2005 PetroChina issued 3.16 billion shares on the Hong Kong stock
exchange for a total amount of US$ 2.4 billion. The placement was made up of 90.9%
new stock and 9.9% secondary shares sold by CNPC. Proceeds will be used for business
development and to fund domestic or overseas acquisitions. Leaders of the issuing
syndicate were Citigroup (United States), Deutsche Bank (Germany) and Goldman
Sachs (United States).28
 In November 2007 during its IPO on the Shanghai market Petrochina issued shares for a
total amount of Rmb 66.8 billion (US$ 9 billion). PetroChina will spend the proceeds to
boost production capacity at its Changqing and Daqing fields, to develop part of the
Jidong Nanpu field, China's biggest oil discovery in almost 50 years, to expand an
ethylene plant at Daqing and for general corporate purposes. Leaders of the issuing
syndicate were CICC (China), CITIC (China) and UBS (Switzerland). 29
2.5
Bond issuances
 In October 2006 PetroChina issued Rmb 2 billion (US$ 253.7 million) 3.76% five year
bonds on the Chinese market. Leaders of the issuing syndicate were Bank of China
(China) and China Securities (China). 30
 In November 2008 CNPC issued RmB 20 billion (US$ 2.9 billion) 3.85% three year bonds.
Leaders of the issuing syndicate were ICBC (China) and Bank of Communications
(China).31
 In December 2008 CNPC planned to issue RmB 20 billion (US$ 2.9 billion) 2.80% three
year bonds. Leaders of the issuing syndicate were ICBC (China) and Bank of
Communications (China).32
 In January 2009 PetroChina issued RmB 15 billion (US$ 2.2 billion) 2.70% three year
bonds. Leaders of the issuing syndicate were CICC (China) and ICBC (China).33
 In March 2009 PetroChina issued RmB 15 billion (US$ 2.2 billion) 2.28% three year
bonds. Leaders of the issuing syndicate were CICC (China) and ICBC (China).34
 In March 2009 CNPC issued RmB 20 billion (US$ 2.9 billion) 2.25% three year bonds.
The proceeds were for general corporate purposes. Leaders of the issuing syndicate were
ICBC (China) and Bank of Communications (China).35
 In May 2009 PetroChina issued RmB 15 billion (US$ 2.2 billion) 3.35% five year bonds.
Leaders of the issuing syndicate were CITIC (China) and China Construction Bank
(China).36
-6-
Chapter 3
3.1
Financing of CNOOC
Introduction
CNOOC is a state-owned oil company with a 64% shareholding in the New York and HongKong exchanges listed subsidiary CNOOC Limited. In 2004 CNOOC Limited was appointed
manager partner of the Block M project in Burma and the CNOOC Limited subsidiary
company, CNOOC Myanmar Ltd, is one of the main consortium companies for this project. 37
3.2
Shareholdings
In June 2009 the following financial institutions owned more than 1.0% of the shares of
CNOOC Limited:38
 Barclays
 Capital Group
3.3
United Kingdom
United States
1.15%
1.71%
Loans
 In June 2006 CNOOC China, a fully-owned subsidiary of CNOOC, secured a Rmb 12.8
billion (US$ 1.5 billion) loan from Export Import Bank of China (China). The proceeds
will be used to finance the growing capital needs for the OML 130 project in Nigeria and to
meet general capital expenditure requirements of other projects.39
3.4
Share issuances
 In April 2006 CNOOC issued shares for a total amount of HK$ 15.375 billion (US$ 1.98
billion). The proceeds will be used to finance the expansion of the group. The issuing
syndicate was led by Credit Suisse (Switzerland), Goldman Sachs (United States) and
JPMorgan Chase (United States).40
3.5
Bond issuances
 In May 2003 CNOOC issued bonds for a total amount of US$ 500 million. The issue was
split into two tranches: US$ 200 million ten year bonds and US$ 300 million thirty year
bonds. The issuing syndicate was led by Credit Suisse (Switzerland) and Merrill Lynch
(United States).41
 In November 2004 CNOOC Finance, a fully-owned subsidiary of CNOOC, issued US$ 1
billion five year convertible bonds. The proceeds of this issue were used to finance the
capital expenditure program and for general corporate purposes. Leaders of the
underwriting syndicate were UBS (Switzerland), JPMorgan Chase (United States) and
Merrill Lynch (United States). Six banks underwrote this issue:42






ABN Amro Bank, now part of RBS
Credit Suisse First Boston
Goldman Sachs
JPMorgan Chase
Merrill Lynch
UBS
United Kingdom
Switzerland
United States
United States
United States
Switzerland
-7-
 In November 2007 CNOOC issued ten year bonds for a total amount of RmB 1.2 billion
(US$ 161.9 million). The proceeds from the bonds issue were to be used to finance the
construction of pipelines. The issuing syndicate was led by CICC (China) and the
syndicate participants were CITIC (China), Bank of China (China), Jianyin Securities
(China) and Everbright Securities (China).43
 In April 2009 CNOOC issued five year bonds for a total amount of RmB 10.0 billion (US$
1.47 billion). The proceeds of the bonds issued were for general corporate purposes. The
issuing syndicate was led by ICBC (China) and Bank of Communications (China)
participated.44
-8-
Chapter 4
4.1
Financing of Daewoo International
Shareholdings
In June 2009 the following financial institutions owned more than 1.0% of Daewoo
International Corporation’s shares:45




Allianz
Export Import Bank of Korea
KAMCO
Korea Development Bank
4.2
Germany
South Korea
South Korea
South Korea
2.81%
11.58%
35.53%
12.09%
Loans
As of 31 December 2008, Daewoo International Corporation had outstanding long-term debt
totalling KRW 157.5 billion (US$ 125.2 million) with the following institutions:46
 AKA Bank
 KAMCO
Germany
South Korea
AKA Bank is a German export finance institution supporting German and European
exports. Its shareholders group consists of 21 German banks.47
Korean Asset Management Company (KAMCO) is a government-owned asset
management company for resolving non-performing loans.48
4.3
Share issuances
In April 2004 Daewoo Corporation issued shares for a total amount of KRW 3.4 billion (US$
2.93 million). The proceeds will be used for general corporate purposes. Information
regarding the banks involved in the issuing syndicate is not available.49
4.4
Bond issuances
In February 2009 Daewoo Corporation issued three year bonds for a total amount of KRW
150 billion (US$ 99.0 million). The issuing syndicate was led by Shinyoung Securities
(South Korea).50
-9-
Chapter 5
5.1
Financing of ONGC (Oil & Natural Gas Corporation
Limited)
Introduction
ONGC Limited, registered on the Bombay stock-exchange, is active in Burma via the wholly
owned subsidiary ONGC Videsh Limited (OVL). OVL is a main consortium company and
owns 17.5% of both blocks A-1 and A-3 in the Shwe Reserve. 51
5.2
Shareholdings
ONGC is 74% owned by the Indian government. In March 2008 the following institutions held
more than 1.0% of the shares in ONGC:52
 Capital Group
 Life Insurance Corporation of India
5.3
United States
India
1.52%
3.15%
Loans
The State Bank of India (India) is mentioned as ONGC’s principal banker in the annual
report 2007-2008. 53
5.4
Share issuances
 In March 2004 ONGC issued US$ 2.28 billion worth of shares in an IPO for the Bombay
Stock Exchange. Lead arrangers of the banking syndicate for the issue were Merrill
Lynch (United States), Kotak Mahindra Securities (India) and JM Morgan Stanley, a
joint-venture of JM Financial (India) and Morgan Stanley (United States).54
 In April 2006 ONGC issued 27.4 million shares to raise US$ 820 million. Joint book
runners in the shares issue were Citigroup (United States) and JM Morgan Stanley, a
joint-venture of JM Financial (India) and Morgan Stanley (United States).55
 In September 2008 ONGC’s overseas exploration subsidiary ONGC Videsh Limited (OVL)
announced an intended IPO of shares totalling of US$ 2.8 billion. The proceeds of the IPO
will be used partly to finance the acquisition of Imperial Energy (a UK-based oil
exploration and production company with activities in Russia and Kazakhstan) and partly
for general corporate purposes. The IPO is expected to take place in the second half of
2009. The banking syndicate members are unknown.56
5.5
Bond issuances
 In January 2009 ONGC’s overseas exploration subsidiary ONGC Videsh Limited issued
one year bonds totalling INR 52.5 billion (US$ 1.0 billion) with coupon rate of 8.15%. The
proceeds of the issue are to finance the acquisition of Imperial Energy (a UK-based oil
exploration and production company with activities in Russia and Kazakhstan). The issue
was led by Citigroup (United States).57
-10-
Chapter 6
6.1
Financing of Myanmar Oil and Gas Enterprise
Loans
No loans were found since January 2004.
6.2
Share issuances
No share issuances were found since January 2004.
6.3
Bond issuances
No bond issuances were found since January 2004.
-11-
Chapter 7
7.1
Financing of Korea Gas Corporation
Shareholdings
In June 2009 the following financial institutions owned more than 0.1% of Korea Gas
Corporation´s shares:58









7.2
Barclays
Batterymarch Financial Management
Daiwa Group
Fidelity International
Norges Bank
Pictet & Cie
Principal Financial Group
StarCapital Corporation
Vanguard Group
United Kingdom
United States
Japan
United States
Norway
Switzerland
United States
Bahamas
United States
0.18%
0.16%
0.17%
0.82%
0.18%
0.28%
0.17%
0.19%
0.23%
Loans
 In September 2005 Kogas announced the intention to secure a US$ 945 million ten year
facility from an international banking syndicate. This facility was to finance the purchase of
four liquefied natural gas (LNG) tankers. This facility was not secured but was replaced by
three other loans which were secured in March 2006. The following banks were to have
participated in the lending syndicate:59









Citigroup
ING
Bank of Nova Scotia
United Overseas Bank
Korea Development Bank
BNP Paribas
Commerzbank
Nordea Bank
Société Générale
United States
Netherlands
Canada
Singapore
South Korea
France
Germany
Sweden
France
 In March 2006 Kogas also secured a US$ 779 million two year loan facility. The facility
was to be used for the further purchase of two tanker vessels. The issuing syndicate was
led by BNP Paribas (France), Korea Development Bank (South Korea) and Société
Générale (France). The following 14 banks participated in the banking syndicate:60












Bayerische Landesbank
CIC
Commerzbank
Daegu Bank
Fortis
Kookmin Bank
Korea Exchange Bank
Mizuho Corporate Bank
NACF Bank (Agricultural Cooperative)
NFFC (Fisheries Federation)
Nordea Bank
Shinhan Bank
-12-
Germany
France
Germany
South Korea
Netherlands
South Korea
South Korea
Japan
South Korea
South Korea
Sweden
South Korea
 Sumitomo Bank
 Sumitomo Mitsui Bank
Japan
Japan
 In March 2006 Kogas secured a US$ 435 million loan facility. The facility was split in two
tranches: a three year US$ 217.5 million loan and a twenty year US$ 217.5 million loan.
The loan was to be used to fund the purchase of two tanker vessels by a joint venture
company owned by Kogas. The issuing syndicate was led by Bank of Nova Scotia
(Canada), Citigroup (United States), ING (Netherlands) and United Overseas Bank
(Singapore). The following banks also participated in the banking syndicate:61







7.3
DnB NOR BANK
Fortis
Hana Bank
Mitsubishi UFJ
Skandinaviska Enskilda
Sumitomo Mitsui
Woori Financial Group
Norway
Netherlands/Belgium
South Korea
Japan
Sweden
Japan
South Korea
Share issuances
No share issuances were found since January 2004.
7.4
Bond issuances
 In October 2005, Kogas issued 1.23% five year bonds for a total of JPY 30 billion (US$
262 million). The proceeds were to be used for payment on borrowings and for cash
reserves. Daiwa Securities (Sumitomo Mitsui Group - Japan) and JP Morgan Chase
(United States) were bookrunners for the issue.62
 In September 2008, Kogas issued 6.9% bonds (maturity unknown) for a total amount of
KRW 90 billion (US$ 80 million). Hyundai Securities, part of Hyundai (South Korea) acted
as book runner.63
 In April 2009, Kogas issued 5.40% ten year bonds for a total of KRW 90 billion (US$ 68.3
million). The proceeds were for general corporate purposes. Samsung Securities, part of
the Samsung Group (South Korea) was the underwriter for this issue.64
-13-
Chapter 8
8.1
Financing of Gas Authority of India Limited (GAIL)
Shareholdings
Gas Authority of India (GAIL) is 57% owned by the Indian government. In June 2009 the
following (financial) institutions owned more than 1.0% of GAIL´s shares:65
 Life Insurance Corporation
8.2
India
9.18%
Loans
 In March 2004 GAIL announced the intention to secure a US$ 300 million loan from an
international banking syndicate. The loan was to be split into three tranches: a US$ 100
million with a five year maturity, a US$ 100 million six year loan and a US$ 100 million
seven year loan. The facility, however, was not secured. The proceeds were to have been
for general corporate purposes. The lending syndicate included the following banks: 66





8.3
Bank of America
BNP Paribas
Development Bank of Singapore
Mizuho Corporate Bank
Standard Chartered
United States
France
Singapore
Japan
United Kingdom
Share issuances
 In February 2004 GAIL issued 83.9 million shares on the Bombay Stock Exchange for a
total value of INR 12.1 billion (US$ 267.9 million). The proceeds were for general
corporate purposes. The issuing syndicate of banks included HSBC (United Kingdom)
and ICICI Bank (India).67
 In March 2006 GAIL issued 20.4 million shares on the Bombay Stock Exchange for a total
value of INR 5.62 billion (US$ 127 million). The proceeds were for general corporate
purposes. The issuing syndicate of banks included Citigroup (United States) and and JM
Morgan Stanley, a joint-venture of JM Financial (India) and Morgan Stanley (United
States).68
8.4
Bond issuances
 In March 2004 GAIL issued 5.85% bonds for a total amount of INR 6.0 billion (US$ 132.8
million). The original issuance amount was for INR 3.0 billion was split in five equal
tranches of INR 600 million (US$ 26.7 million) for maturity periods of six-, seven, eight,
nine and ten years. The issuance, for which the proceeds were intended for general
corporate purposes was oversold by 100%. The issuing syndicate included the following
banks:69






Citigroup
SBI Capital Markets
ICICI Bank
AK Capital
Almondz Global Securities
Kotak Mahindra Capital
United States
India
India
India
India
India
-14-
 R.R. Financial Consultants
India
-15-
Chapter 9
9.1
Golden Aaron
Loans
No loans were found since January 2004.
9.2
Share issuances
No share issuances were found since January 2004.
9.3
Bond issuances
No bond issuances were found since January 2004.
-16-
Appendix 1 References
1
“Chinese-led JV Signs Exploration Contract with Myanmar,” Xinhua, 22 October 2004.
2
CNOOC Ltd. website, www.cnoocltd.com/en/aboutus_works.aspx., Viewed in June 2009.
3
According to fieldwork conducted by AOW. See Blocking Freedom: A Case Study of China’s Oil and Gas
Investment in Burma, Arakan Oil Watch (Oct. 2008), available at www.arakanoilwatch.org; CNOOC Ltd.
website, http://www.cnoocltd.com/en/aboutus_works.aspx.
4
Chinese-led JV Signs Exploration Contract with Myanmar,” Xinhua, 22 October 2004.
5
“COSL Secures Well Service Contracts in Myanmar,” COSL, available at
www.cnoocs.com/pressroom/release_content.jsp?NewsID=46. , 16 Jan. 2006.
6
According to fieldwork conducted by AOW. See Blocking Freedom: A Case Study of China’s Oil and Gas
Investment in Burma, Arakan Oil Watch (Oct. 2008), available at www.arakanoilwatch.org.
7
According to fieldwork conducted by AOW. See Blocking Freedom: A Case Study of China’s Oil and Gas
Investment in Burma, Arakan Oil Watch (Oct. 2008), available at www.arakanoilwatch.org.
8
According to fieldwork conducted by HRW, see Burma: Foreign Oil and Gas Companies Shore up Junta,
HRW (2007), available at www.hrw.org.; see Burma: Foreign Investment Finances Regime, HRW, New
York, 1 October 2007.
9
“Chinese Signs Burmese Gas Deal for 30 Year Supply,” Irrawaddy, 26 December 2008.
10
“Chinese Signs Burmese Gas Deal for 30 Year Supply,” Irrawaddy, 26 December 2008.
11
According to research conducted by the Shwe Gas Movement http://www.shwe.org/about-shwe/index_html
12
China Oil Website. www.chinaoil.com.cn/zly_en/zgs/about.asp?id=375
13
According to research conducted by the Shwe Gas Movement www.shwe.org/about-shwe/index_html
14
According to research conducted by the Shwe Gas Movement www.shwe.org/about-shwe/index_html
15
“Shwe Gas Bulletin,” Volume 3 Issue 5, January 2009.
16
“Shwe Gas Bulletin,” Volume 3 Issue 5, January 2009.
17
“Chinese Signs Burmese Gas Deal for 30 Year Supply,” Irrawaddy, 26 December 2008.
18
According to research from the Shwe Gas Movement. http://www.shwe.org/about-shwe/index_html
19
“China to build new oil, gas pipeline across Myanmar,” AFP
http://www.google.com/hostednews/afp/article/ALeqM5jqfE7ZtJfe0W8vHieY5vRZrprfLA, 18 November
2008.
20
“Myanmar to build deep sea port in western state,” People’s Daily
http://english.peopledaily.com.cn/200706/30/eng20070630_388988.html, 30 June 2007.
21
China to build Huge Port, Highways in Burma,” Irrawaddy http://www.irrawaddy.org/article.php?art_id=7773,
4 July 2007.
22
According to research conducted by the Shwe Gas Movement
www.shwe.org/archives/sinopec-to-construct-china-myanmar-oil-pipeline/
23
Thomson One Banker, Viewed in June 2009.
-17-
24
According to research from the Shwe Gas Movement., (http://www.shwe.org/about-shwe/index_html),
viewed in June 2009; Company Website China Oil, (www.chinaoil.com), Viewed in June 2009.
25
Thomson One Banker, Viewed in June 2009.
26
CNPC gets Citigroup’s backing for PetroKazakhstan acquisition, International Finance Review Asia – Issue
419, London, 3 September 2005.
27
Annual report 2008, PetroChina, Beijing, 25 March 2009.
28
PetroChina breaks record with $2.4bn war chest follow-on, Euroweek - Issue: 919, London, 2 September
2005.
29
PetroChina May Raise $8.9 Billion in Shanghai Sale, Ying Lou and Joe Carroll, Bloomberg, Shanghai, 24
October 2007; Completion of the A Share Issue, Company Announcement to the Shanghai Stock
Exchange, Petrochina, Beijing, 5 November 2007.
30
Asian currency bonds, Euroweek - Issue: 977, London, 27 October 2006.
31
CNPC Makes Debut as China Drives Local Currency Issuance, Euroweek – Issue: 1079, London, 6
November 2008; CNPC Successfully Issues RmB 20 Billion in Initial Medium-Term Note, Press Release
CNPC, Beijing, 11 November 2008.
32
China National Petroleum Ready to Print RmB 20 Billion Bond, Euroweek – Issue: 1085, London, 18
December 2008.
33
Result of the Issue of the First Tranche of Medium-Term Notes in 2009, Company Announcement to the
Shanghai Stock Exchange, PetroChina, Beijing, 16 January 2009; Asian Currency Bonds, Euroweek –
Issue: 1086, London, 8 January 2009.
34
Result of the Issue of the Second Tranche of Medium-Term Notes in 2009, Company Announcement to the
Shanghai Stock Exchange, PetroChina, Beijing, 21 March 2009; Asian Currency Bonds, Euroweek – Issue:
1097, London, 26 March 2009.
35
Tearsheet deal number 2061557101, Thomson One Banker, 25 March 2009.
36
Tearsheet deal number 2076655101, Thomson One Banker, 26 May 2009.
37
Chinese-led JV Signs Exploration Contract with Myanmar,” Xinhua, 22 October 2004.
38
Thomson One Banker, Viewed in June 2009.
39
CNOOC Ltd. Signs Loan Agreement with China EXIM Bank, Press Release CNOOC, Hong Kong, 2 June
2006.
40
CNOOC taps huge demand with slick $2bn fundraising, Euroweek - Issue: 951, 28 April 2006.
41
CNOOC Limited Raises Financing Through Issue of US$500 Million in Guaranteed Notes, Press release
CNOOC, Hong Kong, 15 May 2003; CNOOC and PT Medco Energi hit huge wave of demand, Euroweek Issue: 803, London, 16 May 2003.
42
CNOOC Limited Raises Financing Through Issue of US$850 Million Zero Coupon Convertible Bonds,
CNOOC Press release, Hong Kong, 25 November 2004; CNOOC Set for Cheap $1bn with JPM/ML/UBS’s
Punchy CB, Euroweek - Issue: 881, London, 26 November 2004; 2005 to be Vintage Year for Chinese
Equity in Host of IPOs, Euroweek - Issue: 885, London, 7 January 2005.
43
Tearsheet deal number 1919499101, Thomson One Banker, 8 November 2007; Sailing Out, International
Financing Review, Shanghai, Asia, 10 November 2007.
44
Tearsheet deal 2068807101, Thomson One Banker, 28 April 2009.
45
Thomson Financial Database, Viewed in June 2009.
-18-
46
Daewoo International Corporation, Non-consolidated financial statements, Years ended December 31, 2007
and 2008 with Independent auditors’ report, Seoul, 9 February 2009.
47
Website AKA Bank (www.akabank.de), Viewed in February 2009.
48
Website KAMCO (www.kamco.or.kr), Viewed in February 2009.
49
Tearsheet Deal number 1501373100, Thomson One Banker, 20 April 2004.
50
Tearsheet Deal number 2061855109, Thomson One Banker, 26 February 2009.
51
According to research conducted by the Shwe Gas Movement www.shwe.org/about-shwe/index_html,
Viewed in June 2009; Annual report 2007-2008, ONGC, Dehradun, August 2008.
52
Annual report 2007-2008, ONGC, Dehradun, August 2008.
53
Annual report 2007-2008, ONGC, Dehradun, August 2008.
54
Tearsheet deal number 1466407107, Thomson One Banker, 16 March 2004.
55
Tearsheet deal number 1741579009, Thomson One Banker, 27 April 2006.
56
India: Three's a crowd, International Financing Review, Asia, 6 September 2008; Tearsheet deal number
2010929022, Thomson One Banker, 6 September 2008.
57
Tearsheet deal number 2041762101, Thomson One Banker, 6 January 2009; ONGC plunges into CP as
Indian market takes big leap forward, International Financing Review, Asia, 10 January 2009; ONGC raises
$1bn Imperial funds via CP, Euroweek, issue 1086, 8 January 2009.
58
Thomson Financial Database, Viewed in June 2009.
59
Tearsheet facility number 2053160115, Thomson One Banker, 15 October 2005.
60
Tearsheet facility number 2073928115, Thomson One Banker, 31 March 2006.
61
Tearsheet facility number 2075297115, Thomson One Banker, 31 March 2006; IFR Comments, IFR Asia
433/34, International Financing Review, Singapore, 12 December 2005.
62
Tearsheet deal number 1699250006, Thomson One Banker, 13 October 2005.
63
Asian currency bonds, September 3-10, 2008, Euroweek - Issue: 1071, London, 9 September 2008.
64
Tearsheet deal number 2065583109, Thomson One Banker, 11 April 2009.
65
Thomson Financial Database, Viewed in June 2009.
66
Tearsheet facility number 1869118115, Thomson One Banker, 26 March 2004.
67
Tearsheet deal number 1466410107, Thomson One Banker, 27 February 2004.
68
Tearsheet deal number 1739342009, Thomson One Banker, 2 March 2006.
69
Tearsheet deal numbers 1509375101, 1509376101, 1509377101, 1509378101, 1509379101, Thomson
One Banker, 12 March 2004.
-19-