EBRD plans to finance oil and gas sector of Kazakhstan

/REUTERS, Almaty, Olzhas Auyezov, November 12, 03/ - European Bank for Reconstruction and Development, still not working in oil and gas sector of Kazakhstan, intends to give loans to a number of companies, working in vital for the country industry, a bank's representative said to REUTERS. The first project could be a loan for $7.0 mn to Caspian Offshore Construction (COC), a subcontractor of AgipKCO, which develops giant Kashagan oilfield in Kazakhstani sector of Caspian shelf. "We're actively searching for a company operating in Kazakhstan, which would have long-term (for two and more years) contract with oil and gas company, in order to finance it", - Michael Davey, the director of EBRD on Central Asian countries said to REUTERS on Wednesday. - "This is first example of such projects". COC is a contractor of BAVOF joint venture, controlled by Holland Boskalis and which, in turn, is AgipKCO's contractor. COC and BAVOF are working on artificial islands construction, which AgipKCO will use for drilling. "We hope that funds will be lent to a borrower before the end of the current year", - Davey said. "We are ready to finance many such projects", - he added. Moreover, according to Davey in the nearest future EBRD may obtain a mandate on funds attraction for state oil and gas company Kazmunaygas, which plans thereby to refinance its expenditures on Keniyak - Atyrau pipeline construction, launched this year and connecting Aktobe oblast fields with exporting pipelines. "We expect that an agreement (on proving with mandate) will be signed during the next week", - he said. Davey did not announce refinancing amount. Total cost of the first order of pipeline, according to Kazmunaygas comprised nearly $160 m, and moreover, Chinese CNPC, which develops Aktobe oil and gas fields, invested $100 m. The third project, that EBRD can partly finance, is the capacity expansion of Central Asia - Center gas pipeline, which goes through Kazakhstan, connecting Turkmenistan, a major gas exporter with Russia. The project's initiator - Kaztransgas company, Kazmunaygas'es branch - estimates expansion costs at $1.5 bn. "It can be assumed that the (project's) volume of financing from EBRD's side, including organization of syndicated loans, will amount to approximately $200 m, though it is too early to speak about any figures", - Davey said. Kaztransgas plans to prepare project's justification by March 2004. [2003-11-12]