Washington, D.C., December 8, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, has announced a $25 million investment in corporate facilities for Melrose Resources plc (Melrose). The investment will finance Melrose’s subsidiaries to support oil and gas operations in Bulgaria and Egypt. Melrose has ongoing natural gas developments in the El Mansoura concession in Egypt and the Galata concession in Bulgaria. IFC is making this investment in partnership with commercial banks that will provide another $50 million to these facilities.
Through its subsidiaries, Melrose has 50 percent and 46 percent non-operated interests in Egypt’s El Mansoura and Qantara concessions, both in the onshore Nile Delta. In the El Mansoura area, recent gas discoveries are being brought into production and further appraisal and exploration for gas reserves is ongoing. The hydrocarbons sector is a strong source of foreign investment in Egypt and an important contributor to the country’s GDP. IFC’s investment complements its regional strategy to work with private companies in critical sectors of the economy.
In Bulgaria, Melrose subsidiaries Petreco S.a.r.l and Petreco Bulgaria EOOD have begun natural gas production from the Galata gas field located offshore Varna in the Black Sea, under the Galata Production Concession. They are also exploring in two adjacent offshore exploration concessions in the country. Melrose’s subsidiaries have a 100 percent interest in all three concessions. The Galata gas field development is the first upstream oil and gas development undertaken by the private sector in Bulgaria.
Rashad Kaldany, IFC’s director for Oil, Gas, Mining, and Chemicals, noted, “I am very pleased to see IFC’s continued partnership with Melrose. Our investments with the company have sought to support the respective natural gas developments in Bulgaria and Egypt, promoting gas consumption as a clean and convenient fuel. Companies like Melrose are important participants in the natural gas sectors of these countries, helping develop domestic gas reserves to meet growing demand, contributing additional revenues, and creating employment and opportunities for use of local goods and services.”
Robert Adair, Chairman of Melrose, said, “We are delighted to have built on our good relationship with IFC, which played a key role in enabling Melrose to develop the Galata field in Bulgaria. The IFC team’s sector and regional expertise has been of great benefit to Melrose in establishing itself in Bulgaria and Egypt and the new corporate facility will help us in our objectives to expand our operations in both countries.”
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.
