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EBRD promotes modern technology in the Kazakh oil sector

Published: 29 September 2014 г.
US$ 200 million loan will finance development of KOM Munai’s activities in Kazakhstan, promoting state-of-the-art technology in oilfield operations

The European Bank for Reconstruction and Development (EBRD) has signed a syndicated loan in Kazakhstan to finance new environmentally friendly technologies and improvements to the efficiency of oilfield operations.

The EBRD has arranged a US$ 200 million financing package for KOM Munai, a private oil company operating in the Mangistau region of Kazakhstan. KOM Munai is a subsidiary of OMV Petrom SA, the largest oil and gas company in Romania, and a former investee company of the EBRD.

The Bank will finance half of the project costs, and the other half will be syndicated to commercial banks.
The company’s investment programme over the next three years includes the introduction of state-of-the-art technology in water management and drilling operations, which will lead to significant water savings and reduced drilling times. The project also envisages the possibility of replacing gas-to-power turbines with a more advanced kind.

Aida Sitdikova, the EBRD’s Director for Energy and Natural Resources, Russia and Central Asia, said: “We are pleased to support projects in Kazakhstan that promote sustainability and reduce environmental impact. The project with KOM Munai will promote the application of modern technologies in resource management, which will save water and reduce carbon emissions. This will be the first time that such advanced technologies – beyond what is required by national regulation – are applied in Kazakhstan. We are happy to support a longstanding client’s activities in two of the countries where the EBRD works – Kazakhstan and Romania.”

Thomas Melvin Quigley, Kom Munai’s Managing Director, commented: “This syndicated loan aims to diversify the financing sources for our activities in Kazakhstan.

We highly value the EBRD’s support for the implementation of state-of-the-art technologies which will help to reduce our environmental footprint.”

Since the beginning of its operations in Kazakhstan, the EBRD has invested close to US$ 6.5 billion in the country’s economy, with more than half of the Bank’s projects supporting the private sector.