IFC Finances VAALCO to Boost Gabon's Oil and Gas Production
WASHINGTON, February 4, 2014/African Press Organization (APO)/ -- IFC, a member of the World Bank Group, has agreed to provide VAALCO Gabon with a $65 million reserve based loan facility to support the company's oil exploration and development program in Gabon. The Gabon oil and gas sector, which has seen decreasing output levels, is a critical component of the country's economy.
IFC's financing, a $50 million senior loan and $15 million subordinate tranche, will help fund the construction of two new platforms and associated facilities to increase production from the Etame Marin offshore block. The program aims to increase the block's current gross production to a level close to capacity of the project's floating production storage and offloading vessel.
Smaller oil fields, such as those being developed by VAALCO, have become an increasingly important component of national production in Gabon as some of the country's larger fields mature and face declines in production.
"IFC's continued support to VAALCO Gabon, a valued IFC client since the beginning of its operations in the Etame field, follows our strategy to help Gabon continue to unlock the economic potential of its hydrocarbon resources for long term economic growth and diversification", said Lance Crist, Global Head, IFC Oil and Gas.
IFC will work with the company to ensure that the ongoing field development continues to be carried out in an environmentally and socially sustainable manner.