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Russian oil producer Permtex receives US$ 45 million in EBRD financing
The Russian oil sector will be strengthened by a loan of US$ 45 million (EUR 40.9 million), which the European Bank for Reconstruction and Development (EBRD) is extending to Permtex, a 50/50 joint venture between the LUKoil group and SOCO International plc (SOCO). The loan will be used to develop oil reserves in the concession owned by Permtex in Perm Oblst in the Volga-Urals region.
EBRD financing consists of two main components. The first is a US$ 15 million (EUR 13.6 million) loan for the Bank’s own account while the second component is a revolving US$ 30 million (EUR 27.3 million) loan.
"The investment is taking place at a critical time following the Russian financial crisis and the onset of low oil prices," said Vittorio Jucker, Director of the EBRD’s Natural Resources Team, at the signing in Perm yesterday. "This new financing reflects Permtex’s success in a difficult market and demonstrates how a sound economic basis and committed shareholders can raise long-term financing in Russia even in the present market conditions."
With this loan, Permtex will aim to reduce gas flaring and air emissions, and to comply with national and World Bank environmental standards as well as high-level industry practice. The project will also improve environmental, health and safety management, and will lead to efficient utilisation of gas and water resources.
"We are very pleased that the EBRD has agreed the loan facility," said Ed Story, President and Chief Executive Officer of SOCO International. "This is a clear indication of the quality of the project and highlights the capabilities of Permtex’s workforce. Permtex’s success demonstrates the importance of building a project portfolio that can operate in the uncertain oil environment.
SOCO International plc is an international oil company headquartered in London and listed on the London Stock Exchange. SOCO has operations in seven countries – Mongolia, Russia, Thailand, Tunisia, the United Kingdom, Yemen and North Korea. Development programmes are underway in Russia and Yemen. The company’s combined oil production in Russia, Mongolia, Yemen, Tunisia and the UK is approximately 7,400 barrels of oil per day net to its working interest.
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