IFC Loans PAE US$550mn for Cerro Dragon

Anglo-Argentine oil company Pan American Energy (PAE) has received a US$550mn loan from the International Finance Corporation (IFC) to develop its Cerro Dragon oilfield in Argentina's San Jorge basin, PAE said in a statement.

The financing includes a US$150mn A-loan with an 11-year term and US$400mn in B-loans with terms of 7-8 years.

IFC has never granted a larger loan in its more than 50-year history, PAE said.

PAE plans to invest a total of US$858mn in the Cerro Dragon area in 2007-08.

PAE doubled its production between 1999 and 2006 and is now the second largest hydrocarbons producer in Argentina, PAE said.

The company has a daily production of 220,280boe/d, a figure that represents 16.9% of all oil and 13.4% of all natural gas produced in Argentina.

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