Muscat, March 2, 2005 - The International
Finance Corporation, the private sector arm of the World Bank Group, has
agreed to provide long-term corporate financing of up to $40 million to
Mazoon Petrogas in Oman.
Mazoon and its sister company, Petrogas, are the only locally-owned private
companies operating in Oman's exploration and production sector. Mazoon
explores and produces crude oil in Block-5 of northwest Oman. They
propose to develop Block-5 further and to double current crude oil production
of 15,000 barrels of oil per day.
"Through this investment, IFC hopes to encourage other locally owned
private companies to enter Oman's exploration and production sector. We
are also pleased to be associated with a group that is committed to sustaining
high environmental and social standards," said Rashad Kaldany, IFC’s
director of oil, gas, mining and chemicals.
“IFC's investment in Mazoon will support the development of a local company
that is keen to grow and expand outside its home country. Assistance and
support for this expansion into other developing countries is one
of the key reasons Mazoon has chosen to partner with IFC," said Sami
Haddad, IFC’s director for the Middle East and North Africa.
Mohammed Al-Barwani, Mazoon's chairman, noted, “We are very pleased to
have built a relationship and to have concluded this transaction with IFC.
IFC's expertise in the oil and gas sector complements our strategy
of expanding our operations in nearby emerging markets. We look forward
to strengthening our relationship going forward.”
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.