Announcement of Costa Rica to Receive World Bank Loan for Petroleum Sector Evaluation on June 25, 1981

FOR IMMEDIATE . RELEASE . .world Bank ·1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/119 June 25, 1981 COSTA RICA TO RECEIVE WORLD BANK LOAN FOR PETROLEUM SECTOR EVALUATION The World Bank has approved a loan of $3 million to Costa Rica for a project to support efforts to explore and evaluate the country's p9troleu~ resources, and to develop a pol icy for the energy sector. The Costa Rican government has assigned high priority to the development of indigenous energy resources to reduce the country's dependence on imports. Costa Rica currently imports all of its petroleum products and oil for refining. The $3.9 mill ion project will include an airborne magnetometer survey of the Pacific coast and parts of the Caribbean 1 ittoral and continental shelf and nor- thern onshore area. This survey will outline the geologic structure of these areas and serve as a guide to setting out and interpreting subsequent seismic surveys. Data from previous marine seismic and navigational studies made off the nor- thern Caribbean coast will be reprocessed to determine whether a repeat survey is • justified. In addition, at least 400 line kilometers of marine seismic survey will be shot along the southern Caribbean continental shelf, south of Port Limon . The survey wi 11 locate suitable areas for offshore exploratory dri 11 ing and wi 11 indicate favorable geological trends that could later be mapped onshore. The government-owned Costa Rican Petroleum Refinery (RECOPE), the country's leading institution in the petroleum sector, will receive technical assistance for interpreting data, monitoring exploration, and preparing a comprehensive sur- vey of the country's petroleum potential, as well as a strategy for its develop- ment. About 20 Costa Rican professionals from RECOPE will receive specialized training in petroleum exploration techniques. A study of the refining sector will also be undertaken to help RECOPE review long-term options for meeting the domestic demand for refined products. Consultant services will also be provided to the Secretariat for Energy Sector Planning to help develop an energy data base, prepare specialized sector studies, and to formulate a national energy plan and investment program. The World Bank loan has a term of 15 years, including three years of grace, and interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents. •