Hong Kong / Washington, D.C., January 14, 2009
—IFC, a member of the World Bank Group, has agreed to invest up to $25 million to help finance exploration and appraisal activities led by Salamander Energy plc in Thailand and Lao PDR to spur economic growth and create jobs.
IFC is building on its long-term relationship with Salamander, an independent exploration and production company focused exclusively on Asia, by acquiring a minority equity interest in the Savannakhet production-sharing contract in western Lao PDR, as well as two concessions in the underdeveloped Loei and Chaiyaphum provinces of northeast Thailand.
The Lao PDR project may pioneer the development of a local oil and gas industry as it is the first investment in upstream oil and gas in the country since 1998. If the exploration progresses to commercial production, it will support economic development through income for the government, job creation, and training opportunities among local communities.
IFC is a shareholder of Salamander and last year provided a $50 million loan to the company as part of a $200 million reserve-based facility.
“IFC has been a key partner in supporting our company’s growth,” said James Menzies, Chief Executive of Salamander Energy. “IFC continues to invest in our business even at a time of tight capital market conditions.”
The project, if successful, would increase supply of natural gas, which is in high demand in the Mekong Delta. It is also expected to support regional cooperation between Lao PDR and Thailand through potential export of gas-powered electricity to Thailand, as well as enhance cooperation in other infrastructure developments between the two countries.
“With this additional investment in Salamander, IFC is demonstrating our commitment to building long-term partnerships with clients that work in emerging markets with a view to creating sustainable economic development,” said Somit Varma, IFC’s Director for Oil, Gas, Mining, and Chemicals.
Salamander has operations in Indonesia, Lao PDR, the Philippines, Thailand, and Vietnam.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
