SCB inked a new $37 million loan for PetroVietnam

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Báo Đầu Tư English - 39 month(s) ago 49 readings

SCB inked a new $37 million loan for PetroVietnam

Today, Vietnam Oil and Gas Group (PetroVietnam) and Standard Chartered Bank officially signed a $37 million loan agreement and a mortgage agreement for the semi–submersible tender–assist drilling rig (TAD) project.

The TAD project represents a total investment of $230.5 million under a Business Cooperation Contract (BCC) between PetroVietnam, PetroVietnam Drilling & Well Services Corporation (PVD), Ocean Commercial Joint-stock Bank (Ocean Bank) and Military Commercial Joint-stock Bank (MB). PetroVietnam will contribute 23 per cent of the total investment which is equivalent to $53 million.

The rig operator, PVD Deep Water, has selected Keppel Fels Ltd. Co. (Singapore) as the contractor for design, construction and set up. The rig will deploy the most advanced technology which will be used for the first time in Vietnam.

It is expected that Keppel Fels will hand over and transfer the TAD rig to Vietnam in mid-October. The rig will be used primarily for oil and gas exploration in Vietnam, contributing to the development of PVD’s drilling services as well as those of other oil contractors in Vietnam.

PetroVietnam’s $53 million contribution will include $16 million of equity and $37 million of borrowings secured by PetroVietnam’s interests and benefits in the BCC. With today’s agreements, PetroVietnam has secured its full financial needs for the project.

Louis Taylor, general director of Standard Chartered Bank Vietnam said: “I am delighted that we have been able to partner with PetroVietnam in another innovative project. One of our key areas of expertise is supporting Vietnamese companies to access offshore financing for their long-term financial needs. Today’s signing ceremony for the loan and mortgage is another example of our commitment to our clients through being “Here for good” in Vietnam.”

This is the fourth consecutive loan that Standard Chartered has arranged for PetroVietnam’s important investment projects, following the recent $250 million loan for the Dung Quat Oil Refinery project in 2009, the $430 million loan for PetroVietnam Exploration Production Corporation Ltd. (PVEP) and the $133 million for PetroVietnam Gas (PV Gas) in 2010.

Standard Chartered is a leading international bank, listed on the London, Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in some of the world's most dynamic markets and earns more than 90 per cent of its income and profits in Asia, Africa and the Middle East.

With 1,700 offices in 70 markets, Standard Chartered offers exciting and challenging international career opportunities for more than 80,000 staff.

In Vietnam, Standard Chartered’s history can be traced back to 1904 when the bank opened its first branch in Saigon (now Ho Chi Minh City).

Following the official approval from the State Bank of Vietnam, effective August 1, 2009, Standard Chartered commenced operations in its locally incorporated entity – Standard Chartered Bank (Vietnam) Limited - an important milestone in Standard Chartered’s development in Vietnam.

Standard Chartered now has three branches and employs nearly 700 staff. The bank provides a full suite of wholesale banking products and services to corporate and financial institutions. It also has consumer banking to serve individuals and small and medium enterprises.

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