Announcement of Petroleum Exploration Project in Senegal to be Assisted by IDA on February 10, 1983

. . ,l :World Bani-< m ~:l J 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202} 477-1234 IDA NEHS RELEASE NO. 83/ 43 Contact: Pushpa Schwartz February 10, 1983 (202) 477-3294 PETROLEill-I EXPLORATION PROJECT IN SENEGAL TO BE ASSISTED BY IDA Petroleum exploration in Senegal will be promoted with the help of an SDR 8.9 million ($9.5 million) credit from the International Development Association (IDA). IDA is the the World Bank's affiliate for concessionary lending. A complete study of Senegal's sedimentary basins will provide the technical data necessary to attract foreign oil companies. In addition, Senegal's share in tYo basin-wide regional studies with Guinea-Bissau and The Gambia., and with rfauritania, will be financed. • A geophysical program in the Diao Niadio area which extends inland east of Dakar will include gravimetric, magnetic, and land seismic surveys. A marine seismic survey off the Casa~ance offshore a~ea ~ill be carried out and, ~ if justified, exploratory drilling could take place during 1984. \;J The project also includes technical assistance to Societe des Petroles du Sen~gal (PETROSEN), the country's newly created oil company, and to the Directorate of Mines and Geology, including training and the services of expatriate petroleum specialists. In addition to the IDA credit, the $25.25 million project will use a $13.7 ~illion grant from Petro-Canada International Assistance Corporation towards part of the costs of technical assista.nce and seismic surveys. The Norwegian Agency for International Developr.1ent (NORAD) has approved a grant of $0.5 million to assist the revision of Senegal's petroleum legislation. The Republic of Senegal will provide $1.5 million towards the project. Two advances from the Project Preparation Facility of IDA, totaling $1 million, were approved in 1980 and 1981 to finance preparatory work. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but .has a small annual service charge (0.5% on the undisbursed balances of the credit and 0.75% on the disbursed balances.) • 0 NOTE: IDA credits are denocinated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket'' of currencies. !he U.S. dollar equivalent of the SDR a~ount of the IDA credit reflects the exchange rates existing at the time of negotiation of chc credit.