Announcement of India Oil and Gas Sector Development Project on July 26, 1991

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. 92/5 Contact: Pastor B. Sison Tel: (202) 458-0344 INDIA: OIL AND GAS SECTOR DEVELOPMENT PROJECT The following is information on a project approved by the World Bank's Board. DATE: July 26, 199i WORLD BANK GROUP SUPPORT: World Bank loan: $150 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $150 million IMPLEMENTING AGENCY: Indian Oil Corporation ESTIMATED COMPLETION DATE: 1991 PROJECT DESCRIPTION: The Oil and Gas Sector Development Project will complement the financing provided under the Gas Flaring Reduction project (Ln. 3364-IN), allowing India to meet part of the external financing needs caused by the increase in oil imports that have resulted from the closure of oil wells with exceedingly high gas-oil ratios in the Bombay High oilfields. The loan will finance the foreign exchange costs of crude oil and oil products imports. The project includes: (a) support of government measures to attract private sector companies to participate in the accelerated development of India's oil and gas reserves; and (b) support of the Oil and Natural Gas Commission's (ONGC) efforts to improve the management of the reservoirs of India's largest oilfields (the Bombay High oilfields), resulting in an increase of oil output in future years.