Washington, D.C., February 4, 2014—IFC,
a member of the World Bank Group, has agreed to provide VAALCO Gabon with
a $65 million reserve based loan facility to support the company’s oil
exploration and development program in Gabon. The Gabon oil and gas sector,
which has seen decreasing output levels, is a critical component of the
IFC’s financing, a $50 million senior loan
and $15 million subordinate tranche, will help fund the construction of
two new platforms and associated facilities to increase production from
the Etame Marin offshore block. The program aims to increase the block’s
current gross production to a level close to capacity of the project’s
floating production storage and off loading vessel.
Smaller oil fields, such as those being developed
by VAALCO, have become an increasingly important component of national
production in Gabon as some of the country’s larger fields mature and
face declines in production.
"IFC’s continued support to VAALCO
Gabon, a valued IFC client since the beginning of its operations in the
Etame field, follows our strategy to help Gabon continue to unlock the
economic potential of its hydrocarbon resources for long term economic
growth and diversification", said Lance Crist, Global Head, IFC Oil
IFC will work with the company to ensure
that the ongoing field development continues to be carried out in an environmentally
and socially sustainable manner.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in more than 100 countries, we
use our capital, expertise, and influence to help eliminate extreme poverty
and promote shared prosperity. In FY13, our investments climbed to an all-time
high of nearly $25 billion, leveraging the power of the private sector
to create jobs and tackle the world’s most pressing development challenges.
For more information, visit www.ifc.org.