US$ 40 million to expand producing oil fields
The European Bank for Reconstruction and Development (EBRD) is providing a US$ 40 million loan to the private oil and gas group Merlon Petroleum El Fayum. This investment will support the development of Merlon’s oil and gas concession in the El Fayum area of Egypt.
The EBRD loan will contribute to Merlon’s capital investment programme to develop producing fields, increase reserves and upgrade existing facilities. This will be planned and executed through Petrosilah, its joint venture operating company with the Egyptian General Petroleum Company (EGPC). In addition, Merlon plans to use a portion of the EBRD funds to invest in the commercial recovery of associated petroleum gas.
Through its Small Business Support programme, the Bank will work with Merlon to support the modernisation and expansion of small businesses operating in the Fayum Governorate.
Eric Rasmussen, EBRD Director for Natural Resources, said: “We are pleased to support the responsible development of Merlon’s operations with an ambitious target to eradicate gas flaring, while contributing to the economic development of the Fayum Governorate in general.”
Jason Stabell, Chief Executive Officer of Merlon, said: “We look forward to working with the EBRD to advance activity in the El Fayum concession where, working together with our partners at EGPC, we plan to continue to create value for our companies and the people of Egypt.”
In the long term, the EBRD’s contribution will enhance economic competitiveness in Egypt by improving investment conditions and developing a vibrant private sector, both of which will help generate job opportunities and contribute to overall economic growth.
The EBRD has invested in excess of €1 billion in Egypt through 27 projects (including regional projects) since the start of its activities in the country at the end of 2012. The Bank’s investments include the financial sector, agribusiness, manufacturing and services as well as infrastructure projects such as power, municipal water and wastewater and contributions to the upgrade of transport services.