Pan American Energy 2015

completed

Pan American Energy, LLC’s Argentine Branch is the second largest oil and gas producer in Argentina with production and development in nine blocks located in three hydrocarbon basins in the country; Golfo San Jorge, Neuquina and Northwest. The Company’s most significant block in terms of both reserves and production is the Cerro Dragón block in the Golfo San Jorge basin, located in the south of Argentina. PAE’s parent company, Pan American Energy, LLC is owned by BP (60%) and Bridas (40%) and also holds interests in the Austral basin, and minority participation in non-exploration and production franchises, including oil transportation and storage, gas distribution and power generation and exploration licenses in Argentina, Bolivia and Chile.IFC has been asked to mobilize a corporate loan facility of up to $400 million, including up to $100 million for its own account. The investment will partially fund PAE’s 2015/2016 capital expenditure program focused on further development of PAE’s oil and gas assets in the Cerro Dragón block, in the Golfo San Jorge Basin and in the Lindero Atravesado block, in the Neuquén Basin (the “Project”), and will be financed with a combination of debt and internal cash generation. The Project will include activities covering drilling, secondary recovery, facility expansions, improvements, and parts of the 2015/2016 investment program that will support increasing oil and gas production. As of December 2014, PAE employees included approximately 2,300 staff between the operations of Acambuco, Neuquén, Golfo San Jorge and its Buenos Aires Offices. In addition, approximately 10,700 people worked on PAE’s operations as third party contractors.PAE is a longstanding client with debt financings over the past decade provided in 2009, 2007 and 2005. During IFC’s involvement, the Company has demonstrated its commitment to aligning its activities with IFC’s Performance Standards and in following Good International Industry Practice (GIIP) during the execution of work. The current Environmental and Social Rating (ESRR) for the Project is B-2 – Satisfactory.