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IFC Announces $35 Million Investment in Colombian Oil Field Development


Adriana Gomez
Phone:  (202) 458-5204

Fax:  (202) 974-4384

E-mail:
agomez@ifc.org


Washington, D.C, September 23, 2002—The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, will provide US$35 million to Omimex de Colombia, Ltd. to support the company’s expansion plans.

In partnership with the Colombian state oil company, Omimex de Colombia, Ltd. has formulated a multi-year, staged program to develop various onshore oil fields and upgrade an existing pipeline.  The project, located in Colombia’s Middle Magdalena Basin, will support recent efforts of the government of Colombia to encourage foreign investment in oil exploration and production.  IFC’s $35 million loan will go towards financing the company’s share of development costs.


Omimex de Colombia, Ltd. is a subsidiary of Omimex Resources, Inc. based in Fort Worth, TX, USA.  Omimex Resources, Inc. is an independent energy company engaged in the exploration and production of crude oil and natural gas.


Naresh K. Vashisht, President of Omimex Resources, Inc. said: “We have greatly benefited from IFC’s involvement by drawing on the IFC team’s global expertise in the oil and gas sector.”


Segundo Antonio González, General Manager of Omimex de Colombia, Ltd. also noted: “This financing and association with IFC will not only help complete our current projects but also future projects in Colombia, and reflect IFC's confidence in Omimex as a growing and capable organization.”


Somit Varma, IFC’s Manager of the Oil and Gas Division, said: “We are excited about partnering with a small, growing producer active in Colombia, where companies face difficulties in  attracting long-term financing.  Omimex’s project should yield numerous benefits for Colombia, including royalties, taxes and employment opportunities, as well as help the country maintain oil self-sufficiency.”


Colombia, the second largest recipient of IFC funds in Latin America in the fiscal year 2002, is

becoming one of IFC’s key priorities in the region, not only through financing the private sector but also by working closely with the Colombian government and private companies to improve

securities regulations and to develop private sector corporate governance codes.  This fiscal year’s $219.75 million commitment in Colombia tripled IFC’s previous fiscal year commitment of $73 million.


IFC’s mission 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, and provides technical assistance and advice to governments and businesses.


Since its founding in 1956 through the close of the last fiscal year on June 30, 2002, IFC committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries.  IFC’s committed portfolio at the end of FY02 was $15.1 billion for our own account and $6.5 billion held for participants in loan syndications.

Omimex de Colombia, Ltd