The World Bank's private-sector lender said on Wednesday it has made its first equity investment in the onshore oil and natural gas drilling sector by providing financing to an Indian upstream services company.
The World Bank's International Finance Corp will provide up to $30 million of debt and equity financing to Punj Lloyd Upstream Limited, a subsidiary of Punj Lloyd Limited, a leading Indian engineering and construction company that specializes in the energy and infrastructure sectors.
The investment will help Punj Upstream provide drilling services to countries in the Middle East, North Africa and South Asia, the IFC said.
“IFC's investment in Punj Upstream is a great example of IFC's commitment to supporting the development of India's oil and gas industry and our strategy to help companies from developing countries expand into other developing markets,” said Lance Crist, senior manager, IFC oil and gas.
Onshore drilling service providers are in short supply in many areas of the world and are needed to develop oil and gas resources so that countries can benefit from using domestic energy supplies for long-term economic growth, the IFC said.
Source: Reuters