The EBRD is considering providing financing of up to $100 million to Vostok Energy to allow it to develop the Western part of Bortovoye licensed field in the Saratov Region. This would include some additional exploration and production drilling, completion of construction (already underway) of field facilities, gas processing unit and financing of implementation of the Environmental and Social Action Plan.
Transition impact:
i) support to a small private, independent gas producer in Russia, where upstream oil and gas production is increasingly dominated by large state-owned companies; and
ii) setting standards of corporate governance and business/environmental conduct.
Vostok Energy Limited is a privately owned oil and gas company incorporated in 2006 in accordance with the laws of England and Wales. The Company via its subsidiary holds licences for oil and gas production in Saratov region.
EBRD finance:
Up to $ 40 million equity plus up to $60 million convertible loan.
Total project cost:
The Company intends to spend over $220 million on development of its Bortovoye licence in Saratov region over the period from 2009 to 2011 inclusive. |
