Kazakhstan branch of Sberbank issued $60 million loan to Max Petroleum 03 января 2013, 19:23
Photo courtesy of fed.sibnovosti.ru
British oil-producing company Max Petroleum that has assets in Kazakhstan has received its first tranche of a loan from SB Sberbank JSC (Kazakhstan branch of Sberbank) in amount of $60 million, a href="http://interfax.kz" target="_blank">Interfax-Kazakhstan reports citing the company's message.
$47 million out of this loan will be spent by the company to repay the credit line in Macquarie Bank and the rest will be spent on partial financing of the current drilling program. According to the plans for restructuring of the debt to Macquarie, Max Petroleum paid $47 million to the bank on December 28. Another $3 million will be paid to Macquarie before March 31, this will mean a full performance of all its obligations to the bank in line with the restructuring terms.
Earlier Kazakhstan branch of Russian Sberbank provided $90 million to Max Petroleum for restructuring of its debt to Macquarie Bank. The company planned to receive the loan in two tranches. The first tranche of $60 million was obtained in December 2012 and the second tranche of $30 million will be transferred to the company in 2013.
According to the message, Max Petroleum will receive the second tranche of the credit line after it agree on certain preliminary conditions with the bank. This work is expected to be completed by March 31. The funds from the second tranche are going to be spent on completion on restructuring with Macquarie ($3 million), restructuring of 6.75 percent of convertible bonds worth $85.6 million (around $3.4 million) and financing of exploration, drilling and production projects.
Completion of the restructuring will decrease the total debt of Max Petroleum from $140 to $90 million and open an access to net funds of around $30 million that will be spent on drilling of production and exploration wells and related expenses.
Max Petroleum specializes in exploration and production of oil and gas and has major projects in Kazakhstan. The company owns blocks A and E of East Alibek field and Astrakhanskiy block.