The European Bank for Reconstruction and Development (EBRD) has joined HSBC Bank Egypt in a facility providing a combined total commitment of US$ 100 million to the Improved Petroleum Recovery (IPR) group, an independent exploration and development company. The development facility has been structured with an accordion feature to allow additional commitments.
The investments are intended to facilitate IPR's near-term growth strategy. This includes increased drilling; integrated technical studies to optimise production and energy efficiencies through enhanced oil recovery (EOR) technologies; environmental and facilities upgrades to responsibly accommodate increased production; capacity building and technology transfer to its Egyptian joint-venture operating companies; and participation in other growth opportunities including upcoming bid rounds in Egypt.
Eric Rasmussen, EBRD Director for Natural Resources said: “We are pleased to be supporting IPR's ambitious development strategy through this investment, one of our first in the sector. While we set high technical performance thresholds for this facility, there is an underlying and overall emphasis on health, safety and environment, as well as corporate responsibility and energy efficiency. The EBRD investment in this facility and others like it will facilitate much-needed domestic and sector development, in a safe and responsible way that minimises environmental impact.
IPR's Chief Operating Officer, Sam Dabbous, said: "We remain committed and optimistic about the Egyptian petroleum sector, which is an important part of our exploration and development portfolio. The new facility and the significant commitments behind it – both from the lenders and from IPR – fit our corporate strategy and mandate for responsible and continued growth. The EBRD’s investment team is superb and will be an important part of our continued success."
Through the transaction, the EBRD contributes to greater competitiveness in Egypt’s energy sector as well as to the development of a vibrant private sector, which will help generate job opportunities in the country and contribute to overall economic growth. To date, the EBRD has invested US$ 209 million in Egypt through seven projects in various sectors (agribusiness, manufacturing and services, natural resources and banking and private equity) benefiting the private sector. The Bank has also initiated technical assistance support programs with over 105 Egyptian small and medium-sized businesses.