Washington, D.C./New Delhi, October 8, 2008
—IFC, a member of the World Bank Group, has made its first equity investment in the onshore drilling sector. Onshore drilling service providers are in short supply in many areas of the world and are needed to develop oil and gas resources so that countries can benefit from using domestic energy supplies for long-term economic growth.
IFC is providing up to $30 million of debt and equity financing to Punj Lloyd Upstream Limited, a subsidiary of Punj Lloyd Limited, a leading Indian engineering and construction company that specializes in the energy and infrastructure sectors. The investment will help Punj Upstream provide drilling services in the Middle East, North Africa, and South Asia regions.
“IFC is playing an important role at the beginning stages of our company’s growth,” said Punj Upstream CEO Vikram Walia. “Their deep understanding of the global oil and gas industry and their advice on environmental and social issues will be a key component of our success as Punj Upstream enters the drilling-services sector.“
IFC’s involvement with Punj Upstream will also help the company strengthen the responsible approach it takes to managing environmental, health, safety and social issues.
“IFC’s investment in Punj Upstream is a great example of IFC’s commitment to supporting the development of India’s oil and gas industry and our strategy to help companies from developing countries expand into other developing markets”, said Lance Crist, Senior Manager,IFC Oil and Gas.
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
.
