| EBRD supports private ownership in Kazakhstan’s oil and gas sector |
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10/03/2010 16:44 (699 Day 22:23 minutes ago) | |||||
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The FINANCIAL -- The EBRD Board of Directors has approved a $50 million convertible loan to Petrolinvest to finance the completion of exploration works at the company’s main oilfields.
"Petrolinvest is a Polish company listed on Warsaw Stock Exchange engaged in the trading of fuels in Poland and in the exploration and production of oil and gas in Kazakhstan. Through its subsidiaries in Kazakhstan, Petrolinvest holds five exploration contracts for a total area of over 13,200 square kilometres, located in petroleum-rich regions," EBRD informs.
The proceeds of the EBRD loan, subject to completion of legal documentation, will be used to finalise the exploration at Petrolinvest’s two most advanced sites in Kazakhstan. The project will support the company’s strategy to become a leading independent oil and gas exploration and production company.
The completion of exploration at the two oilfields will enable Petrolinvest to establish the volume of its hydrocarbons reserves and start oil production. The project will lead to an increase in the company’s value, enabling it to raise additional funds to continue investments programme in its oilfields.
“Supporting cross-border expansion of Polish private companies is one of the EBRD priorities alongside the promotion of more widespread private ownership in the oil and gas sector in Kazakhstan. This project will enable Petrolinvest to pursue its ambitious development strategy in the current challenging market conditions and to set new, improved corporate governance and environment standards”, said Kevin Bortz, EBRD Director for Natural Resources.
“The decision of the EBRD’s Board of Directors is the result of many months of detailed analyses performed by the Bank’s experts on the Petrolinvest’s exploration works in Kazakhstan. With this decision, we have received not only a commitment to further finance our investment program in Kazakhstan, but also the support of one of the world’s most conservative financial institutions and the largest institutional investor in our region, which sets a particularly high standards for the corporate governance,” said Paweł Gricuk, President of the Management Board of Petrolinvest.
To date, the EBRD has invested more than €3.8 billion in Poland and over €2.4 billion in Kazakhstan. In the natural resources sector alone the Bank has committed over €3 billion in more than 90 projects in countries of its operation.
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