China, the world’s second-biggest energy consumer, will lend $10 billion to Kazakhstan in return for a stake in an oil company in the Central Asian country. China National Petroleum Corp. and KazMunaiGaz National Co. will buy AO Mangistaumunaigas, according to the terms of an agreement signed in the presence of President Hu Jintao and his Kazakhstan counterpart Nursultan Nazarbayev in Beijing. The $10 billion aid comprises a $5 billion loan from the Export-Import Bank of China to the Development Bank of Kazakhstan and another $5 billion from China National to KazMunaiGaz.

China has signed three other loan-for-oil agreements with Russia, Brazil and Venezuela this year, tapping its $1.95 trillion foreign exchange reserves to buy energy assets. On February 17, China had agreed to provide Russia with $25 billion in loans in return for 300,000 barrels a day of oil for the next 20 years. Venezuelan company Petroleos de Venezuela (PDVSA) on its part will provide 200,000 barrels a day against a $4 billion loan from China Development Bank1.

• 1. “China, Kazakhstan ink $10 bln Loan for Oil,” April 16, 2009, at http://asianenergy.blogspot.com/2009/04/china-kazakhstan-ink-10-bln-loan...