Thursday, 21 October 2010

Zhaikmunai set for production boost

Zhaikmunai, the AIM-listed independent that produces around 7,500 b/d of crude oil from the Chinarevskoye field in northwest Kazakhstan, is preparing to bring on stream a new gas treatment facility that it hopes will push production up towards 50,000 b/d in the coming years.

The facility was built by US-based Exterran and Kazakh engineering firm Kazstroyservice, which has a 26 per cent stake in Zhaikmunai, and is part-owned by Kazmunaigas chairman Timur Kulibaev. Zhaik, which is majority owned by its founder and chairman Frank Monstrey, a Belgian financier, is raising more funds by issuing a $450 million bond with a fixed coupon of 10.50 per cent a year and maturing on 19th October, 2015.

Zhaik will use the money to refinance existing debt, most of which is held with BNP Paribas , and to fund general running costs. The lead managers of the bond issue, which is due to be finalised soon, are Citibank, ING and JP Morgan.

For more news and expert analysis about the Caspian region, please see Caspian Focus.

© 2010 Menas Associates

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