The EBRD is supporting
the involvement of the private sector in the oil and gas industry in central
Europe, with an equity investment of up to US$30 million to Central Europe Oil
Company – CEOC Limited (CEOC), an independent company specialising in the
re-development of existent mature hydrocarbon reservoirs. CEOC was established
in 2009 with backing from Barclays Natural Resource Investments (BNRI), a
natural resources focused global private equity business of Barclays Capital,
the investment banking division of Barclays Bank PLC.
Primary hydrocarbon
recovery operations typically result in production of a fraction of a
reservoir's original volume of oil and gas. Further development requires
additionalinvestment, expertise and advanced technologies that are in limited
supply in central and eastern Europe. This has resulted in a number of mature
and underdeveloped hydrocarbon resources in the region with underutilised
reserves and production potential.
Through this
investment the EBRD is becoming a minority shareholder in CEOC alongside BNRI
and the company’s senior management, aiming to support the company in its drive
to redevelop a number of mature and underdeveloped hydrocarbon reservoirs in
central Europe.
The EBRD’s
participation is aimed at ensuring strict adherence to EU environmental, health
and safety standards. The project will also contribute to the transfer of skills
in the upstream sector and will assist in setting high standards for corporate
governance and environmental and social responsibility for industry in the
region.
CEOC has signed
cooperation agreements with the Hungarian oil company MOL and with the Croatian
oil and gas company INA and is considering similar opportunities with other
operators in the region. The Bank’s funds will be used to co-finance CEOC’s
planned capital expenditures, including implementation of advanced recovery
methods, infield drilling of new wells and re-completion of existing wells that
will increase oil and gas production and reserves.
“The current
dependency of central Europe on oil and gas imports makes development of
indigenous production an important priority. By investing into the Central
Europe Oil Company, the EBRD is supporting the introduction of advanced
hydrocarbon recovery technologies in the region. This project will also raise
the environmental standards in the sector,” said Kevin Bortz, EBRD Director for
Natural Resources.
“We are delighted to welcome the EBRD as a fellow
shareholder in CEOC and look forward to working with them and management as CEOC
develops opportunities in Central and Eastern Europe,” said Meb Somani, Head of
Oil and Gas Investment at BNRI.
"We are proud to have
the EBRD as our shareholder and we hope that with the Bank’s support we shall
grow and expand our activities to the other countries," said Andrija
Kojakovic, CEO of Central Europe Oil Company.
Since the beginning
of its activity, the EBRD has committed over €3.4 billion in the natural
resources sector in countries of its operation. Source;
EBRD