China Petroleum Engineering extends loan, projects 2026 related-party transactions

China Petroleum Engineering Corp. (CPECC) is extending a $6.5 million loan to the COOEC AND CPECC JOINT VENTURE (Kingfisher Oilfield Consortium) until December 31, 2027, maintaining a 6% interest rate. This extension, pending shareholder approval, aims to support the Kingfisher oilfield project and is not expected to negatively impact CPECC’s financial health. The Kingfisher Consortium is a joint venture between CPECC's Uganda subsidiary and CNOOC International Uganda, with each holding a 50% equity stake.

CPECC has projected its 2026 daily related-party transactions, forecasting significant interactions with China National Petroleum Corporation (CNPC) and its affiliates. These transactions, involving buying and selling goods and services, leasing, and financial services, are estimated to be fair and not create dependency. Key financial estimates include $1.2 bn for purchasing goods and services and $6 bn for selling goods and services.

Furthermore, CPECC plans to apply for a total financing limit of 15.5 bn yuan for 2026 from CNPC-affiliated financial institutions. This includes a maximum daily deposit balance of 29 bn yuan and a maximum daily loan balance of 15.5 bn yuan, with interest rates determined by market prices.