IFC Supports Argentina’s Oil and Gas Sector, Helping Meet Growing Energy Needs
In Washington, D.C.:
Josef Skoldeberg, IFC
Phone: (202) 473-6978
Adriana Gomez, IFC
Phone: (202) 458-5204
Washington, D.C. /Buenos Aires, September 2, 2009 IFC, a member of the World Bank Group, has signed a $153 million financing agreement with Pan American Energy to help the company develop its oil and gas resources to meet Argentina’s growing energy needs and generate government revenues and create jobs.
The financing package consists of loans totaling $50 million for IFC’s own account and a $103 million loan raised by IFC from other development institutions and commercial banks. IFC’s loans extend to eight years, a long loan maturity in Argentina’s financial markets.
“IFC has been a true long-term partner for Pan American Energy, and we have greatly benefitted from its continued support and willingness to extend financing in the midst of a tough financial market,” said Felipe Bayón Pardo, CEO of Pan American Energy. “We particularly appreciate IFC’s strong sector knowledge and the speed at which it has been able to execute our financing.”
Pan American Energy has been an IFC client for over 20 years and is the second-largest oil and gas producer in Argentina. The company is a major employer in southern Argentina and a strong supporter of local businesses. The financing will be used for the company’s $700 million expansion program in the Cerro Dragon, Piedra Clavada, and Koluel Kaike blocks located within the Golfo San Jorge basin.
IFC also is working with Pan American Energy to strengthen its work on environmental and social management and will continue its partnership to help train local groups and individuals on how to start and run successful small businesses.
“IFC has the ability to provide loans and mobilize additional financing for companies operating in tough financial markets,” said Somit Varma, IFC’s Global Head for Oil, Gas, Mining, and Chemicals. “With this financing we look forward to continuing our long-term relationship with Pan American Energy, a company that is meeting Argentina’s growing energy demands and shares our commitment to helping local communities benefit from oil and gas operations.”
Participants in the financing include BNP Paribas, Banco Itau BBA, Banco do Brasil, Calyon, Cordiant Capital, Corporaci_n Interamericana para el Financiamiento de Infraestructura, and Korea Development Bank.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $15 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.
About Pan American Energy
Pan American Energy is a regional hydrocarbons exploration and production regional, with activities in Argentina, Bolivia, and Chile. In the last decade, Pan American Energy has established itself as the second-largest oil and natural gas producer in Argentina. The company accounts for 16 percent of Argentina’s hydrocarbons production and is one of the few companies in the country to have consistently increased its oil and gas production in recent years. Since 2000, Pan American Energy has increased its production by 90 percent and replaced 162 percent of its produced reserves.