Muscat, March 2, 2005
- The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to provide long-term corporate financing of up to $40 million to Mazoon Petrogas in Oman.
Mazoon and its sister company, Petrogas, are the only locally-owned private companies operating in Oman's exploration and production sector. Mazoon explores and produces crude oil in Block-5 of northwest Oman. They propose to develop Block-5 further and to double current crude oil production of 15,000 barrels of oil per day.
"Through this investment, IFC hopes to encourage other locally owned private companies to enter Oman's exploration and production sector. We are also pleased to be associated with a group that is committed to sustaining high environmental and social standards," said Rashad Kaldany, IFC’s director of oil, gas, mining and chemicals.
“IFC's investment in Mazoon will support the development of a local company that is keen to grow and expand outside its home country. Assistance and support for this expansion into other developing countries is one of the key reasons Mazoon has chosen to partner with IFC," said Sami Haddad, IFC’s director for the Middle East and North Africa.
Mohammed Al-Barwani, Mazoon's chairman, noted, “We are very pleased to have built a relationship and to have concluded this transaction with IFC. IFC's expertise in the oil and gas sector complements our strategy of expanding our operations in nearby emerging markets. We look forward to strengthening our relationship going forward.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
