Petrom Kazakhstan

Location:

Kazakhstan

Project number:

46043

Business sector:

Natural resources

Notice type:

Private

Environmental category:

B

Target board date:

09 Jul 2014

Status:

Complete

PSD disclosed:

27 May 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering a syndicated loan of up to USD 200 million to Kom Munai LLP (“KOM”), a subsidiary of the Romanian oil and gas company OMV Petrom. KOM is the holder of a license that allows exploiting the Komsomolskoye hydrocarbons field in Kazakhstan.

The proceeds of the loan will be used by KOM to fund capital expenditures to sustain and expand production at the field and for the refinancing of loans received from companies within the Petrom Group.

Transition Impact

The loan will support the operations of a private company in a sector widely dominated by the Kazakh state.

It is envisaged that the EBRD financing will have a positive demonstration effect by way of agreeing with KOM on an Environmental and Social Action Plan in line with the EBRD’s environmental and social policy. The potential for energy efficiency/savings will be assessed as part of the due diligence as well as the potential application of Western technologies and procedures.

The Client

Kom Munai LLP (KOM), a Kazakh entity majority-owned by OMV Petrom, will be the borrower of the loan. OMV Petrom is the leading private oil and gas company in Romania and the largest company in the country. It generates most of the Romanian domestic oil production and approximately half of its natural gas. Petrom has been listed on the Bucharest Stock Exchange (BSE) since 2001. The present shareholders are: Austrian OMV (51.01%), the Romanian Ministry of Economy (20.64%), the Property Fund (18.99%), and free float (9.36%).

EBRD Finance

Up to USD 200 million senior loan to KOM, a part of which will be syndicated. It is expected that the loan will benefit from a corporate guarantee from OMV Petrom.

Project Cost

Estimated total project costs are USD 200 million.

Environmental Impact

Categorised B (ESP 2008). The environmental and social due diligence will be conducted by independent environmental and social consultants and it shall include an independent environmental, social and health and safety audit of existing operations and facilities, a review of corporate environmental and social management systems and procedures, as well as an environmental and social analysis of the proposed investment. It should be noted that OMV Petrom has an environmental, health and safety management systems in place; the Environmental and Social Due Diligence (ESDD) will need to identify and asses to which extent such management systems have been implemented at the Kazakh-level assets. Potential impacts may be associated with the disposal of drilling mud and drilling sludge, treatment and disposal of produced water and associated gas flaring and risks of oil spills and leaks. The ESDD will need to identify potential issues and develop an environmental and social action plan containing required avoidance and mitigation measures. The ESAP will need to be finalised and agreed prior to Final Review.

Technical Cooperation

None.

Company Contact

OMV Petrom SA
22, Coralilor Street, Petrom City
013329 Bucharest
Phone: +40 (3721) 60336
Fax. +40 (21) 206 9557
Web: www.petrom.com
Enquiries: treasury@petrom.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.