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IFC Provides $24 Million to Vinccler Oil and Gas in Venezuela


In Washington
Adriana Gomez

Phone: +1(202) 458 5204

Email:
agomez@ifc.org


Washington, D.C., July 5, 2005. — The International Finance Corporation, the private sector arm of the World Bank Group, signed an agreement to provide a long-term loan of $24 million to Vinccler, a Venezuelan company engaged in the exploration and production of oil and gas. Vinccler, a wholly owned subsidiary of Petrofalcon, will use the financing to increase its production and implement technical tests. This operation supplements IFC’s previously signed loan for a total financing package of $36 million.
 
“This transaction reaffirms IFC’s commitment to supporting the growth of Venezuelan companies in the country’s oil and gas sector.  Vinccler’s strong commitment to sustainable development in Falcon state and the environmental benefits of the project were important factors in approving the loan,” said Rashad Kaldany, IFC’s Director for Oil, Gas, Mining, and Chemicals.  


Juan Francisco Clerico, Chairman and CEO of Vinccler, stated, “This agreement represents another important step for Vinccler in developing the oil and gas reserves on the East Falcon Block in Venezuela.  We consider IFC’s participation a strong endorsement of the technical and financial merits of our project.”  


Vinccler is committed to delivering natural gas to the pipeline operated by the state oil company, PDVSA, and to increasing its oil production in western Venezuela. The natural gas produced by Vinccler will displace liquid fuels currently being burned at the Paraguana refinery.


Atul Mehta, IFC’s Director for Latin America and the Caribbean, noted, “This operation fits well with our strategy to support local players in the region.  It will facilitate the company’s emergence as an important local participant in Venezuela’s oil and gas sector.”


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing and transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, 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.