The European Bank for Reconstruction and Development (EBRD) is supporting the modernisation of oil drilling services in southern Kazakhstan with a US$ 10 million loan to Zhanros Drilling LLP, a leading private company providing oil field services to oil and gas companies in the country’s Kyzyl Orda region.
The EBRD’s 5-year corporate loan will be used to support the company’s expansion. The loan will finance the purchase of new high-tech drilling equipment to enable the company to offer modern drilling services, which are currently a scarcity in the Kyzyl Orda region.
With the EBRD’s support the company will introduce the best international standards for health, safety and environmental management enabling Zhanros to work with international oil and gas counterparts in the future.
With this financing, the EBRD is making its first investment in a local independent operator in the oil field services sector in the region. The Bank is contributing to the development of local expertise and best international know-how used throughout the oil and gas extraction and processing cycles.
“The EBRD is supporting Zhanros as it adopts modern and more efficient technologies in oil and gas drilling, providing its customers with better and more reliable services, which will have a considerable impact on the sector in Kazakhstan,” said Varel Freeman, EBRD First Vice President.
“We are pleased that the EBRD supports the next stage of Zhanros’ development which will enable the company to expand in new markets by acquiring work and equipment of international quality,” said Alexei Myltykbaev, General Director of Zhanros.
The EBRD, as one of the largest foreign investors in Kazakhstan, has invested over €2.8 billion in over 130 projects in various sectors of the Kazakh economy, mobilising additional investments in excess of about €7 billion, with about 70 per cent of the projects’ being investments into the development of the country’s private sector.