Baikalsky Sberbank to extend 3-bln-ruble credit line to Irkutsk Oil Co
IRKUTSK. Feb 14 (Interfax) - The Baikalsky Head Office of Sberbank of Russia will extend a seven-year non-revolving credit line totaling 3 billion rubles to LLC Irkutsk Oil Company (IOC), the bank said in a press release.
The funds will be used to develop new licensed sections and oil and gas condensate fields, including the Yaraktinskoye and Markovskoye fields, which will allow IOC to boost its oil recovery factory, increase production and step up its participation in the national Eastern Siberia-Pacific Ocean (ESPO) project.
This year, IOC plans to increase capital investments to 10 billion rubles, a 1.6-fold increase over 2011.
"The majority of the funds will be set aside for setting up facilities at our fields, drilling and repairing wells. Around 1.7 billion rubles will be spent exclusively on geological exploration work, and 600 million rubles will be spent on constructing infrastructure facilities," head of IOC's board of directors Nikolai Buinov has said.
Irkutsk Oil Company was set up in 2000, and includes UstKutNeftegas LLC, Danilovo Oil Company LLC, IOC-Neftegazgeologiya LLC, and CJSC IOC-Sever. It holds licenses to prospect for and produce oil and gas in the Irkutsk region. Its combined reserves of recoverable resources amount to 67 million tonnes of oil, 153 billion cubic meters (bcm) of gas, and 9.5 million tonnes of gas condensate.
CJSC IOC-Capital owns IOC. Among its shareholders is the European Bank for Reconstruction and Development (EBRD), with an 8.15% stake.
Sberbank of Russia's Baikalsky Head Office operates in the Irkutsk region, the Transbaikal territory and Buryatia.