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.
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