24. LOANS AND BORROWINGS
Current
|
|
|
2016 |
2017 | ||||
|
|
Effective interest rate and final maturity |
Loans |
Notes |
Total |
Loans |
Notes |
Total |
|
|
|
|
|
|
|
|
|
|
Short-term loans and borrowings |
|
|
|
|
|
|
|
|
General loans**** |
LIBOR+0.35% to 0.75% per annum with maturity within one year |
10,361 |
- |
10,361 |
8,779 |
- |
8,779 |
|
|
|
10,361 |
- |
10,361 |
8,779 |
- |
8,779 |
|
Loans and borrowings due within one year |
|
|
|
|
|
|
|
|
For Tangguh LNG Project** |
LIBOR+0.19% to 0.335% per annum with maturity within one year |
215 |
- |
215 |
212 |
- |
212 |
|
Notes* |
|
- |
9,102 |
9,102 |
- |
4,901 |
4,901 |
|
|
|
215 |
9,102 |
9,317 |
212 |
4,901 |
5,113 |
|
|
|
10,576 |
9,102 |
19,678 |
8,991 |
4,901 |
13,892 |
24. LOANS AND BORROWINGS (continued)
Non-current
|
|
|
2016 |
2017 | ||||
|
|
Effective interest rate and final maturity |
Loans |
Notes |
Total |
Loans |
Notes |
Total |
|
For Tangguh LNG Project** |
LIBOR+0.19% to 0.335% per annum with maturity through to 2021 |
758 |
- |
758 |
502 |
- |
502 |
|
For Tangguh LNG III Project *** |
LIBOR+1.37% to 3.45% per annum with maturity through 2021 to 2029 |
327 |
- |
327 |
777 |
- |
777 |
|
Notes* |
|
- |
129,713 |
129,713 |
- |
117,079 |
117,079 |
|
|
|
1,085 |
129,713 |
130,798 |
1,279 |
117,079 |
118,358 |
24. LOANS AND BORROWINGS (continued)
* The details of notes are as follows:
|
Issued by |
Maturity |
Coupon Rate |
Outstanding Principal Amount | |
|
December 31, 2017 |
December 31,2016 | |||
|
USD million |
USD million | |||
|
|
|
|
|
|
|
CNOOC Finance (2003) Limited |
Due in 2033 |
5.500% |
300 |
300 |
|
CNOOC Finance (2011) Limited |
Due in 2021 |
4.25% |
1,500 |
1,500 |
|
CNOOC Finance (2011) Limited |
Due in 2041 |
5.75% |
500 |
500 |
|
CNOOC Finance (2012) Limited |
Due in 2022 |
3.875% |
1,500 |
1,500 |
|
CNOOC Finance (2012) Limited |
Due in 2042 |
5.000% |
500 |
500 |
|
CNOOC Finance (2013) Limited |
Due in 2018 |
1.750% |
750 |
750 |
|
CNOOC Finance (2013) Limited |
Due in 2023 |
3.000% |
2,000 |
2,000 |
|
CNOOC Finance (2013) Limited |
Due in 2043 |
4.250% |
500 |
500 |
|
CNOOC Nexen Finance (2014) ULC |
Matured in 2017 |
1.625% |
- |
1,250 |
|
CNOOC Nexen Finance (2014) ULC |
Due in 2024 |
4.25% |
2,250 |
2,250 |
|
CNOOC Nexen Finance (2014) ULC |
Due in 2044 |
4.875% |
500 |
500 |
|
Nexen |
Matured in 2017 |
5.65% |
- |
62 |
|
Nexen |
Due in 2019 |
6.2% |
300 |
300 |
|
Nexen |
Due in 2028 |
7.4% |
200 |
200 |
|
Nexen |
Due in 2032 |
7.875% |
500 |
500 |
|
Nexen |
Due in 2035 |
5.875% |
790 |
790 |
|
Nexen |
Due in 2037 |
6.4% |
1,250 |
1,250 |
|
Nexen |
Due in 2039 |
7.5% |
700 |
700 |
|
CNOOC Finance (2015) U.S.A. LLC |
Due in 2025 |
3.500% |
2,000 |
2,000 |
|
CNOOC Finance (2015) Australia Pty Ltd |
Due in 2020 |
2.625% |
1,500 |
1,500 |
|
CNOOC Finance (2015) Australia Pty Ltd |
Due in 2045 |
4.200% |
300 |
300 |
All the notes issued mentioned above were fully and unconditionally guaranteed by the Company.
24. LOANS AND BORROWINGS (continued)
** In connection with the Tangguh LNG Project in Indonesia, the Company delivered a guarantee dated October 29, 2007, in favor of Mizuho Corporate Bank, Ltd., which acts as the facility agent for and on behalf of various international commercial banks under a US$884 million commercial loan agreement. The Company guarantees the payment obligations of the trustee borrower under the subject loan agreement and is subject to a maximum cap of approximately US$135,163,308.28.
A letter of credit agreement was signed between the Company and Talisman Energy Inc. (“Talisman”) with execution of the agreement in respect of the sale of a 3.05691% interest of the Company in the Tangguh LNG Project to Talisman. Accordingly, Talisman has delivered valid and unexpired standby letters of credit to the Company (as the beneficiary) as a counter-guarantee to offset the exposure of the Company’s guarantee for the aforesaid interest of 3.05691% in respect of the Tangguh LNG Project financing. The amount of the standby letters of credit was US$30 million. In February 2017, the standby letters of credit were withdrawn as the Company transferred the 3.05691% guarantee obligations to BP Corporation North America Inc..
*** In connection with the financing for the third LNG process train of Tangguh LNG Project in Indonesia, the Company delivered two guarantees dated August 3, 2016, in favor of Mizuho Bank, Ltd., which acts as the facility agent for and on behalf of various international commercial banks and Indonesian local commercial banks under two commercial loan agreements with aggregate loan amount of US$2,145 million. The Company guarantees the payment obligations of the trustee borrower under the subject loan agreements and is subject to an aggregate maximum cap of approximately US$573 million.
**** As at December 31, 2017, US$650 million bank loans (2016: US$800 million) were guaranteed by the Company.
As at December 31, 2017, US$694 million shareholder loans (2016: US$694 million) of the Group were included in general loans. For details please refer to Note 28(v).
24. LOANS AND BORROWINGS (continued)
The maturities of the long term bank loans are as follows:
|
|
|
| ||
|
|
2016 |
|
2017 |
|
|
|
|
|
|
|
|
Repayable: |
|
|
|
|
|
Within one year |
215 |
|
212 |
|
|
After one year but within two years |
225 |
|
212 |
|
|
After two years but within three years |
225 |
|
212 |
|
|
After three years but within four years |
225 |
|
108 |
|
|
After four years but within five years |
97 |
|
61 |
|
|
After five years |
313 |
|
686 |
|
|
|
1,300 |
|
1,491 |
|
|
|
|
|
|
|
|
Amount due within one year shown under current liabilities |
(215) |
|
(212) |
|
|
|
|
|
|
|
|
|
1,085 |
|
1,279 |
|
Supplemental information with respect to the long term bank loans:
|
|
|
|
Maximum |
Average |
Weighted |
|
|
|
Weighted |
amount |
amount |
average |
|
|
|
average |
outstanding |
outstanding |
interest rate |
|
For the year ended |
Balance |
interest rate |
during the |
during the |
during the |
|
December 31 |
at year end |
at year end |
year |
year (1) |
year (2) |
|
|
|
|
|
|
|
|
2016 |
1,300 |
1.74% |
1,369 |
1,199 |
1.29% |
|
2017 |
1,491 |
2.52% |
1,491 |
1,396 |
2.13% |
(1) The average amount outstanding is computed by averaging the outstanding principal balances as at January 1, and December 31, of each year.
(2) The weighted average interest rate is computed by averaging the interest rates as at January 1, and December 31, of each year.
There was no default of principal, interest or redemption terms of the loans and borrowings during the year.