INTERNATIONAL CONSORTIUM WILL CREDIT PETRECO
Delegations of the Black Sea Bank for Trade and Development (BSBTD) and of the International Financial Corporation (IFC), which is within the World Bank group, held 3-day negotiations (Nov. 12 to 14) with the Bulgarian branch of the Luxemb®urg-registered company Petreco S.A.R.L. (the concessionaire for extraction of natural gas from the deposit near the Galata cape) on the opportunities and terms to credit the deposit's exploitation.The two international financial institutions are ready to set up a consortium and its representatives were negotiating the terms for rleaseing a loan of almost USD50MN. The credit will provide about 76% of the financing, necessary for the establishment of infrastructure for natural gas extraction from the deposit, found 8 years ago in the Black Sea shelf opposite the Galata cape. The other USD15MN will come for the owner of Petreco S.A.R.L. - Scotland's investment company Melrose Resources. For that reason on November 15 and 16 the negotiations moved from Sofia to Edinburg, where the delegations of BSBTD and IFC met with the owners of Petreco S.A.R.L. Before leaving for Scotland, however, the foreigners asked the company to point to a trustworthy commercial bank in Bulgaria, which would service the credit. Their preferences were directed to the local branch offices of big foreign banks.Bankers also held meetings in Sofia with the managements of Bulgargas and the State Agency for Energy and Energy Resources. The money - USD65MN (which Petreco S.A.R.L. expects from the credit and its owner Melrose Resources) will be spent to purchase, deliver and install a platform, a compression station, and a pipeline (82 km long, 23 km of which will be in the sea), and a gas measuring station.