Nick Snow
Washington Editor
WASHINGTON, DC, Jan. 17 -- The International Finance Corp. has agreed to provide $25 million of financing for oil and gas exploration and production activities in Thailand and Laos.
The work will be led by Salamander Energy PLC, a London-based independent producer that operates exclusively in southeast Asia. IFC said it would acquire a minority equity interest in the Savannakhet production-sharing contract in western Laos and in two concessions in the underdeveloped Loei and Chaiyaphum provinces of northeastern Thailand.
The project in Laos may pioneer development of a local oil and gas industry since it is the first E&P investment in the country since 1998, according to the World Bank Group member. It said if the project becomes commercial, it will supply income to the government, create jobs, and provide training opportunities in local communities.
If the project is successful, it would increase supplies of natural gas, which is in high demand in the Mekong River delta, IFC said. It said the project also could support regional cooperation between Laos and Thailand through the potential export of gas-generated electricity to Thailand and possibly lead to other infrastructure developments between the two countries.
IFC already is a Salamander shareholder and provided a $50 million loan to the company last year as part of a $200 million reserve-based facility, it indicated.
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