Announcement of IFC Investment in Oil Exploration in Ghana December 23, 1986

UEP@ International Finance Corporation s Tuesday, December 23, 1986 Monique Amaudry FOR RELEASE Press Release 87/31 CONTACT: (202) 676-9331 IFC INVESTS IN OIL EXPLORATION IN GHANA The International Finance Corporation is making a $4.5 million equity investment in the $30 million Keta Basin oil exploration program in Ghana, consisting of seismic acquisition, drilling of three exploration wells and one appraisal well. IFC is the private sector arm of the World Bank and the leading multilateral institution providing equity investments and long-term loans to private enterprises in developing countries. The objective of the project is to explore for and discover oil reserves in an area of approximately 650,000 acres in the Keta Basin, located in the southeast corner of Ghana. The full exploration program should be completed by 1989. The project will be carried out through an unincorporated joint venture between Diamond Shamrock Africa Petroleum B.V. and IFC, who will participate to the extent of a 15% working interest. - MORE - -2- The project is the first result of Ghana's efforts to revive petroleum exploration and the Government has actively encouraged IFC to play a catalytic role in this effort. The exploration drilling will be the first carried out by the private sector in Ghana since 1981 and this project is seen as a vital element in renewing the industry's interest in Ghana as a potential petroleum producing area. IFC has made one other investment in Ghana, in Ashanti Goldfields Corporation, which commenced in 1985. - END -