Announcement of IDA to Support Petroleum Exploration in Mali on May 11, 1981

FOR IMMEDIATE RELEASE . ' •World Bank ·1 s1 s H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/76 May 11 , 1981 IDA TO SUPPORT PETROLEUM EXPLORATION IN MALI The International Development Association (IDA) announced today the approval of a credit of SOR 3. 1 mill ion ($3.7 million) to Mali to support the evaluation of the country's petroleum potential. Proceeds from the credit will finance technical assistance to help monitor exploration by oil companies and interpret the results of such exploration, to investigate known oil shale deposits, and to help elaborate a natronal energy pol icy. Mali is at a turning point in exploring its hydrocarbon resources. Even if alternative energy sources partially replace • petroleum products in some uses, petroleum imports will continue, leading to continued difficulties in the balance of payments, unless a domestic petroleum source can be discovered. Geophysical and geological surveys have indicated that two areas in the Taoudeni Basin, the country's vast north central desert area, offer the best.prospects for hydrocarbon discoveries in Mali. The project will focus its evaluation efforts on those areas. The Ministry of Industrial Development (Ministere du Developpe- ment lndustriel et du Tourisme, Bamako, Mali) will implement the project, which will cover a three-year period. The IDA credit is interest-free, except for a service charge of 3/4 of 1% per annum to cover the Association's administrative costs. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a ''basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit • •