Peter Howard Wertheim
OGJ correspondent
RIO DE JANEIRO, July 23 -- International Finance Corp. (IFC), the private sector arm of World Bank Group, reported that it inked a $105 million loan agreement with Brazilian state-owned oil firm Petroleo Brasileiro SA (Petrobras) for investment in Petrobras Energía Venezuela (PEV), a wholly owned subsidiary of Perez Companc (Pecom), which Petrobras recently acquired.
PEV is in the process of changing its name to Petrobras Energia SA.
"We will use this loan to expand enhanced oil recovery (EOR) from the reservoirs of the four mature fields in Venezuela, a process that was already being implemented by Pecom," Roberto de Toledo, coordinator for Mexico and Venezuela of Petrobras's international division, told OGJ.
Carlos Alvarez, PEV chief financial officer, noted, "This financing is essential for the development of oil reserves in the most important of (PEV's) assets, the four oil fields that PEV operates." PEV participates in four oil and gas fields in Venezuela: Oritupano-Leona, La Concepción, Acema, and Mata.
Bernard Pasquier, IFC director for Latin America, said, "The transaction emphasizes IFC's role in sustaining core private sector activities under difficult and complex market conditions, such as those that exist in Venezuela today," referring to the 6-week worker strike within Petroleo de Venezuela SA, which virtually paralyzed Venezuela's oil exports and added to the continuing political turmoil in that country (OGJ, Jan 20, 2003, p. 29).
Pasquier added, "PEV has a strong track record of operations in Venezuela, as evidenced by PEV's ability to substantially increase oil production on the mature oil fields it operates."