EBRD inks syndicated loan agreement with Kazakh oil company
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) has signed a syndicated loan agreement with Kazakh company engaged in oil industry.
The agreement envisages financing new environmentally friendly technologies and improvements to the efficiency of oilfield operations, EBRD said on September 26.
The EBRD has arranged a $200 million financing package for KOM Munai, a private oil company operating in Kazakhstan's Mangistau region.
The bank will finance half of the project costs, and the other half will be syndicated to commercial banks.
The company's investment program over the next three years includes the introduction of state-of-the-art technology in water management and drilling operations, which will lead to significant water savings and reduced drilling times. The project also envisages the possibility of replacing gas-to-power turbines with a more advanced kind.
"The project with KOM Munai will promote the application of modern technologies in resource management, which will save water and reduce carbon emissions. This will be the first time that such advanced technologies - beyond what is required by national regulation - are applied in Kazakhstan," Aida Sitdikova, the EBRD's Director for Energy and Natural Resources, Russia and Central Asia, said.
Since the beginning of its operations in Kazakhstan, the EBRD has invested close to $6.5 billion in the country's economy, with more than half of the bank's projects supporting the private sector.