DFF - Nautilus

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EBRD provides a 6-year secured loan to Circle Maritime Invest (the "Company") to support acquisition of two offshore support vessel to be employed in Turkmen sector of the Caspian Sea. The EBRD financing will be used for the acquisition of two anchor handling tug supply vessels which will be chartered by Dragon Oil Turkmenistan Ltd and be employed for the initial charter period in the Turkmenistan sector of the Caspian Sea in connection with the development of the Cheleken oilfield. Currently the Company predominantly operates in the Kazakhstan sector of the Caspian and the Project will support to the Company's expansion in Turkmenistan. The Project will support market expansion of a non-dominant operator of offshore support vessels and facilitate greater regional integration between Kazakhstan and Turkmenistan by supporting cross-border provision of services. Circle Maritime Invest, an existing client of the EBRD, is a privately owned joint stock company registered in Kazakhstan and operating a fleet of offshore support vessels in the Caspian Sea, predominantly in the Kazakhstan sector. The Company provides transportation and logistics services mostly to oil and gas companies engaged in oil development projects in Kazakhstan. Categorised B (2014 ESP). The Project involves provision of a loan to the Company to finance up to 70 per cent of the acquisition and delivery costs of two second-hand Anchor Handling Tug Supply (AHTS) vessels. The vessels will be employed in the Turkmenistan sector of the Caspian Sea. The Company (Circle Maritime Invest) provides maritime logistic and support services to oil and gas companies and operates a fleet of offshore suppor vessel including tug boats, floating hotels, passenger ferries, barges and survey vessels. The Company has been awarded contracts to provide maritime logistic and support services to offshore oil developments in the Caspian Sea. However, the Company is not directly involved in the exploration or extraction of oil or gas and its vessels are not used as cargo vessels for transportation of oil, gas or other hazardous materials. The service provided by the Company to offshore oil developments include, among others, catering, diving support, oil spill response, recovery support and response in the event of any offshore emergency, environmental monitoring and survey activities. As part of the Bank's environmental and social due diligence (ESDD) for the Project, an independent environmental and social audit of the Company, its vessels and operations against the EBRD's Environmental and Social Performance Requirements and international maritime safety and environmental regulations and standards, including the International Convention for the Prevention of Pollution from Ships (MARPOL) and other relevant International Maritime Organization (IMO) conventions was carried out. The ESDD showed that the Company's fleet complies with applicable international maritime safety and environmental standards and requirements. The Company has certified ISO 9001:2008, OHSAS 18001:2007 and ISO 14001:2004 management systems, which include establishing safeguards against all identified risks, evaluating audit results, analysing the cause of non-conformances and reviewing the effectiveness of corrective actions. The ESDD confirmed that the Company operates its vessels within established and controlled navigation routes. The Company's vessels will mainly shuttle between the Port of Hazar and the Lam (Dzheytun) and Zhdanov (Dzhigalbek) oil fields nearby. The Company's vessels will not routinely use Turkmenbashi port where, due to its location, the navigation channels leading to the port are partially located inside the Hazar Nature Reserve, a protected area which covers an area of 2,690 km2 along the south-east coast of the Caspian Sea in the territories of Turkmenistan and Iran. The Company has a sound safety and operational track record and it is compliant with the International Safety Management (ISM) Code and the International Ship and Port Facility Security (ISPS) Code. The Company is committed to high level of quality, safety, reliability, customer service and environmental responsibility and provides its customers with the emergency rescue, response and recovery support in the event of any offshore emergency. The Project financing will also include a covenant for the Company to obtain and maintain environmental and safety certifications and comply with IMO conventions for new vessels during the project lifespan. The Bank will be monitoring the environmental and social compliance and performance of the project through reviewing the Company's annual reporting to the Bank and conducting monitoring visits when necessary. None. Gulam Aliyev Gulam.Aliyev@coc.kz +7 (727) 259 73 33 www.coc.kz 34/95 Karasai Batyr str., 050010 Almaty, Republic of Kazakhstan 44 20 7338 7380 Email: projectenquiries@ebrd.com