News Column

Petrom Kazakhstan

June 7, 2014



Project Status : Active Project Location : Kazakhstan Country:Kazakhstan Project number: 46043 Business sector:Natural resources Public/Private: Private Environmental category: B Target Board date : 9 July 2014 Status: Passed concept review, Pending final review PSD disclosed: 27 May 2014 Project Description : The EBRD is considering a syndicated loan of up to USD 200 million to Kom Munai LLP ( KOM ), a subsidiary of the Romanian oil and gas company OMV Petrom. KOM is the holder of a license that allows exploiting the Komsomolskoye hydrocarbons field in Kazakhstan. The proceeds of the loan will be used by KOM to fund capital expenditures to sustain and expand production at the field and for the refinancing of loans received from companies within the Petrom Group. Transition Impact : The loan will support the operations of a private company in a sector widely dominated by the Kazakh state. It is envisaged that the EBRD financing will have a positive demonstration effect by way of agreeing with KOM on an Environmental and Social Action Plan in line with the EBRD s environmental and social policy. The potential for energy efficiency/savings will be assessed as part of the due diligence as well as the potential application of Western technologies and procedures. The Client : Kom Munai LLP (KOM), a Kazakh entity majority-owned by OMV Petrom, will be the borrower of the loan. OMV Petrom is the leading private oil and gas company in Romania and the largest company in the country. It generates most of the Romanian domestic oil production and approximately half of its natural gas. Petrom has been listed on the Bucharest Stock Exchange (BSE) since 2001. The present shareholders are: Austrian OMV (51.01%), the Romanian Ministry of Economy (20.64%), the Property Fund (18.99%), and free float (9.36%). EBRD Finance : Up to USD 200 million senior loan to KOM, a part of which will be syndicated. It is expected that the loan will benefit from a corporate guarantee from OMV Petrom. Project Cost : Estimated total project costs are USD 200 million. Environmental Impact : Categorised B (ESP 2008). The environmental and social due diligence will be conducted by independent environmental and social consultants and it shall include an independent environmental, social and health and safety audit of existing operations and facilities, a review of corporate environmental and social management systems and procedures, as well as an environmental and social analysis of the proposed investment. It should be noted that OMV Petrom has an environmental, health and safety management systems in place; the Environmental and Social Due Diligence (ESDD) will need to identify and asses to which extent such management systems have been implemented at the Kazakh-level assets. Potential impacts may be associated with the disposal of drilling mud and drilling sludge, treatment and disposal of produced water and associated gas flaring and risks of oil spi

Project completion date : 2015-07-31 12:00:00

Major organization : OMV PETROM SA

Address : 22, Coralilor Street, Petrom City 013329 Bucharest Romania Website: www.petrom.com



Country :Romania

Email : treasury@petrom.com

Financier : European Bank for Reconstruction and Development (EBRD),

Financier address : Financier: European Bank for Reconstruction and Development (EBRD) One Exchange Square London EC2A 2JN United Kingdom Website : http://www.ebrd.com/


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Source: TendersInfo (India)


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