INTERNATIONAL FINANCE

CORPORATION
A long term partner for global oil and gas
Introduction to IFC
IFC: A MEMBER OF THE WORLD BANK GROUP

IBRD IDA IFC MIGA ICSID

International International International Multilateral International
Bank for Development Finance Investment Centre for
Reconstructio Association Corporation and Settlement of
n and Guarantee Investment
Development Agency Disputes

Loans to Interest-free Solutions Guarantees

Conciliation
middle- loans and in of foreign
and
income and grants to private direct
arbitration of
credit-worthy governments sector investment’s
development investment
low-income of poorest non-
disputes
country countries commercial
governments risks

3
IFC: INTEGRATED SOLUTIONS FOR INCREASED IMPACT

IFC ASSET
INVESTMENT ADVISORY MANAGEMENT
COMPANY
 Loans  Firm-level advice  Wholly owned
 Equity  PPP transaction subsidiary of IFC
advice  Private equity fund
 Trade finance
 In partnership w/World manager
 Syndications
Bank, advice on  Invests third-party
 Securitized finance broader market capital alongside IFC
 Risk management development and
enabling environment
 Blended finance
for private sector
$51.7 bn portfolio 720 projects valued at $6.4 bn under mgmt
(FY14) $1.1 bn (FY14) (FY14)

4
IFC’S GLOBAL REACH
 109 country and regional offices worldwide
 4,015 staff (57% based outside Washington DC)

● Moscow
● Paris
● Tbilisi
● Istanbul ● Almaty
● Washington
● Cairo ● New Delhi
● Hong Kong
● Mexico City ● Santo Domingo
● Dakar

● Nairobi

● Sao Paulo
● Johannesburg
● Buenos Aires ● IFC HQ / Hub Offices
● IFC Country Offices

5
THE POWER OF PARTNERSHIPS
900 Financial
3,000 Employees Institution Clients
in 86 Countries
IFC’S GLOBAL
NETWORK FOR
Host County SOLUTIONS
Governments
30+ IFIs/DFIs

2,000 Private
Sector Clients
Sovereign Civil Society
Wealth Funds/
Institutional
Investors 20+ Bilateral Donors/
15+ Private
Foundations

6
IFC Added Value in Oil & Gas
OVER 50 YEARS OF SECTOR EXPERTISE:

Modernization
Greenfield projects Expansion projects
projects

Relationships with
Oil and gas international Technical advice
corporate strategy stakeholders, and support
including investors

8
OIL AND GAS EXPERTISE
IFC HAS EXPERIENCE THROUGHOUT THE VALUE CHAIN

UPSTREAM MIDSTREAM DOWNSTREAM

EXPLORATION E&P OIL PIPELINE GAS PIPELINE LNG GAS DISTRIBUTION

Paraguay Egypt, Algeria, Chad, Nigeria Peru Turkey Peru

Bulgaria Cameroon

President Energy Petroceltic ExxonMobil Seven Energy Peru LNG IZGAZ Calidda

$24,000,000 $100,000,000 $200,000,000 $105,000,000 $300,000,000 $51,000,000 $50,000,000

Equity Investment Senior Loan Senior Loan & Equity Investment Syndicated Project Senior Term Loan Junior & Senior
Syndication Financing Term Loans
Mandated Lead
Investor Arranger Investor (with AMC) Lender Lender Lender
December 2013 April 2013 June 2001 April 2014 June 2007 June 2009 March 2010

9
LONG-TERM COMPETITIVE FINANCING
ONE STOP SHOP FOR FULL RANGE OF FINANCING INSTRUMENTS

› Private placement in listed equities

› Traditional private equity
› Asset level farm-ins
EQUITY › Typically 5-20% shareholding
› Not just financial investor, adding to shareholder value

› Subordinated loans
MEZZANINE / › Income participating loans
QUASI EQUITY › Fixed and
› Convertibles, preferred shares floating
rates
› Local
› Corporate loans - Reserve based lending, Straight currencies
SENIOR DEBT corporate debt, Partial credit guarantees for bonds › Up to 20-
& › Long-term project finance - Greenfield, Expansion year
EQUIVALENTS maturity
› Mobilization of funds from other lenders and
investors, through financings, syndications,
underwritings and guarantees

10
LONG-TERM COMPETITIVE FINANCING
IFC ENGAGES ACROSS THE E&P CYCLE

Exploration Appraisal Development Production &

Maturity
New Area Mature Area

Aerial surveys 2D, 3D seismic 3D seismic Construction Water, gas injection

Geochemical Nearby wells Additional wells Data consolidation Infill drilling
2D seismic Drilling Reserves Horizontal wells
Drilling Resources Development plan
Resources

Wildcat well Discovery well Commerciality First oil / gas

Joint Venture “Farm-in” Corporate equity Mezzanine (QD) Reserve Based Loan
Corporate equity Mezzanine (QE) Reserve Based Loan Senior Loan

11
LONG-TERM COMPETITIVE FINANCING
CAPITAL MOBILIZATION: IFC WORKS WITH CLIENTS TO FIND
FINANCING SOLUTIONS BEYOND ITS OWN ACCOUNT
IFC ASSET MANAGEMENT COMPANY
IFC AFRICAN, LATIN
Co-invests with IFC in equity and equity-related investments across a range of sectors
AMERICAN &
in Sub-Saharan Africa, Latin America, and the Caribbean
CARIBBEAN FUND

IFC GLOBAL Co-invests with IFC in equity-related investments in the infrastructure sector in
INFRASTRUCTURE FUND emerging markets

IFC‘S SYNDICATED LOANS & MANAGEMENT DEPARTMENT

SYNDICATED LOANS Mobilizes funds through: (i) Syndicated "B" Loans, mainly through commercial banks,
MANAGEMENT (ii)Coordinated and/or syndicated parallel loans, and (iii) A Loan Participations (ALPs)

Allows institutional investors, which provide capital on a portfolio basis, to passively

MANAGED CO-LENDING
participate in IFC’s future loan portfolio. Through its State Administration for Foreign
PORTFOLIO PROGRAM
Exchange, the People’s Bank of China has committed $3 billion in the next 6 years

OTHER FINANCING PARTNERS

SOVERIGN WEALTH
IFC works closely with Temasek, a national investment company in Singapore, and
FUNDS / NATIONAL
other investment funds globally to mobilize additional capital for our clients
INVESTMENT COMPANIES

12
ADVISORY SERVICES
IFC relies on 50+ years of experience of working in developing countries
to develop practical, sustainable business solutions for our clients
• Community investment strategies
• Measuring the impact of community spending
Local • Increasing participation of local businesses in supply chain
economic • Business skills training for local entrepreneurs
developmen • Promoting female workforce
t
• Helping local governments manage revenues (e.g. royalties) for economic
development

• IFC works with the different governance priorities, including publicly listed
companies, founder and family-owned firms, financial institutions, and newly
Corporate privatized and state-owned enterprises
governance • IFC Corporate Governance experts advise clients on (i) defining shareholder rights,
(ii) creating a solid control environment, (iii) ensuring high levels of transparency
and disclosure, and (iv) setting up an empowered board of directors

Resource • Energy efficiency analysis to reduce water, energy and raw materials use
efficiency • Water risk/footprint assessment

13
INTEGRATED FINANCING & SUSTAINABILITY EXPERTISE

FINANCING ADVISORY SERVICES

› Equity › Supplier development (linkages)

› Quasi-equity › Community Development

› Loans › Municipal Capacity Building

› Capital markets access and mobilization › World-class environmental and social advice

› Risk management › Resettlement & Indigenous Peoples

› Political risk cover › Access to Community Development Funding

IFC’S PACKAGE DEAL BRINGS TOGETHER WORLD-CLASS TALENT, A GLOBAL OUTLOOK AND A
SOCIAL/ENVIRONMENTAL MANDATE TO DELIVER SUSTAINABLE BUSINESS SOLUTIONS; IFC’S
TEAM INCLUDES FINANCIAL PROFESSIONALS, PETROLEUM ENGINEERS AND GAS SPECIALISTS,
ENVIRONMENTAL SPECIALISTS, DEVELOPMENT EXPERTS, AND COMMUNICATIONS SPECIALISTS

14
COUNTRY RISK MANAGEMENT CAPABILITIES

World Bank
Strong government synergies
relations

Country Reduced risk of

Withholding tax Risk breach of contract,
benefit Mitigation convertibility

Reduced risk of expropriation

15
BEST PRACTICE TOOLS IN E&S RISK MANAGEMENT

 PERFORMANCE
Ensure smooth STANDARDS
and continuous operations HELP TO IMPROVE THE BOTTOM LINE
 Maximize local development benefits fosters good neighborly relations
 Raise project’s acceptance locally and with governments through good corporate citizenship
 Optimize resource management (water, energy, etc.)
 Create reliable and cost effective supply chains
 Attract top talent both locally and internationally
 Enhance company brand value to investors

IFC’S IN-HOUSE ENVIRONMENTAL AND SOCIAL SPECIALISTS ASSIST CLIENTS WITH:

 Pollution prevention  Community development & consultation
 Cleaner production  Cultural property
 Socioeconomic / workplace / labor issues  Impact assessments
 Land acquisition / resettlement /  E&S management systems
compensation  Health & safety
 Indigenous people  HIV / AIDS
 Biodiversity  Gender empowerment

16
Select IFC Oil & Gas
Investments
KUWAIT ENERGY
IFC’S TRUSTED BRAND ATTRACTS CAPITAL IN RISKY MARKETS
Kuwait Energy is the largest privately-
owned E&P company in Kuwait with assets
in Egypt, Yemen, Oman and Iraq
In 2009, IFC provided Kuwait Energy (KEC)
with an innovative Sharia compliant US$50
million financing package at a time when
commercial banks had limited liquidity. The
package consisted of a US$35 million reserve-
based loan and a US$15 million income
participation loan. IFC also actively assisted
KEC with corporate governance and
environmental and social issues.
IFC’s ability to deliver results led KEC to seek
IFC’s further partnership.
In 2010, KEC invited IFC to participate in a pre-
IPO private placement as an anchor investor.
KEC was expecting to raise US$50 million
equity from IFC and an additional US$50
million from other investors. IFC’s participation
was seen by potential new investors as key in
demonstrating confidence in the company’s
growth potential.
In 2012, following the Arab Spring and with
limited appetite from international commercial
banks for Middle Eastern risk, IFC again
provided the company a US$165 million
reserve based loan alongside Deutsche Bank.
18
Selected Key Investment Risks:
 Commodity price risk: Following the sharp decline in oil prices in the second half of 2008,
oil prices in 2009 experienced high volatility. Given that backdrop, uncertainty around the
near-term behavior of oil prices led to investor discomfort, leading IFC to step in to fill the
vacuum.
 Country and political risk: Due to the volatility of the political regimes in some countries in
which KEC operates, there is risk that a change in government may result in losing
licenses issued by previous governments or the enactment of other obstacles of doing
business. This was highlighted during the Arab Spring events. IFC continued to fund the
company during these times.
Due to the risks above, among others, investors were relying on IFC participation to provide
confidence and comfort in the company and the investment.
Summary of IFC Engagement with KEC: Net Production
 2008 – First engagement with IFC. IFC  4,630 boepd
provides Corporate Governance advice
 2009 – Following the global financial crisis, First ever  9,364 boepd
IFC provides KEC the first ever Shariah Shariah
compliant RBL and income participation compliant
facility RBL
 2010 – IFC’s participation in equity round  12,798 boepd
as anchor investor allows KEC to raise
US$100 million in midst of Arab Spring
 2012 – IFC and Deutsche Bank’s US$165  15,018 boepd
million RBL for KEC wins Project Finance’s
Middle East Upstream Deal of the Year
 2014 – IFC continues to provide corporate  24,921 boepd
governance advice ahead of potential IPO
KOSMOS ENERGY AND THE JUBILEE OIL FIELD
IFC STRUCTURES INNOVATIVE SOLUTIONS TO FIT CLIENT NEEDS
Kosmos Group is privately held and owns growing oil and gas exploration companies focused on West Africa. Kosmos is the partner
with the second largest share in the Jubilee project.

In 2009, IFC provided Kosmos Energy with US$100 million loan as part of a US$750 million reserve-based lending facility. The proceeds of the
RBL were used for the first phase of development of the Jubilee oil field, Ghana’s first oil production project.

IFC took on an important leadership role in negotiating and structuring the transaction. IFC was essential in converting the financing into a
multi-tranche (bridge / senior / junior stand-by / junior overrun) facility that closely met the needs of the borrower.

Additionally, IFC made a key contribution to the investment, facilitating discussions with the Government of Ghana, allowing the company to
obtain requisite consents to put the loan facility in place.

When Kosmos took on a second RBL, IFC was happy to continue its support of the company and the Jubilee project by participating in the new
US$2.0 billion facility. This second IFC investment, a US$100 million senior loan in 2011, supported an expansion of the Jubilee field as well as
the development of new fields in Ghana.

The Kosmos IFC further supported the Jubilee project, investing in the partner with the
financing was largest share in the field: Tullow Oil.
awarded Deal of the
Year 2009 by Project In 2009, Tullow raised a US$2.0 billion reserve-based lending facility to refinance
Finance Magazine outstanding commercial bank debt with the remaining proceeds going towards its
and Project Finance portion of Phase 1 of the Jubilee project. IFC invested US$115 million in the facility.
International
Magazine in the IFC invested an additional US$50 million in 2011 when Tullow increased its RBL to
African Oil and gas US$3.5 billion to fund continued capital expenditure needs.
category.
In 2012, Tullow refinanced its existing RBL facility, requesting IFC to refinance its
US$165 million investment as both the company and the other investors valued IFC’s
involvement.

19
GEOPARK LIMITED
IFC FORMS LONG-TERM PARTNERSHIPS WITH ITS CLIENTS
GeoPark is a growing Latin American oil and gas company with
en t
operations in Chile, Colombia, Brazil, Peru, and Argentina. pm
e lo 2014: Through a
de v
a nd
series of
February 2006: IFC invested US$10 million in early-stage equity (pre- th acquisitions, now
g row has operations in
IPO) in GeoPark Limited, a junior independent exploration and production k
o Pa r 2008-9: Additional Chile, Brazil,
company with limited production focused on development of marginal oil Ge IFC investments. Colombia,
Quadrupled Argentina, and
and gas reserves in Argentina and Chile. production and most recently
increased acres Peru. Revenues
May 2006: GeoPark was listed on the AIM market of the London Stock under license 500% have grown at
Exchange. 2006: Operations in
in 2 years, adding ~180% CAGR
over 3 million acres since initial
Chile and
December 2006: IFC disbursed a US$20 million loan to GeoPark. This Argentina. IFC first
in Chile, via 2 new investment.
blocks.
capital was used to expand operations. invests.

By year-end 2006, GeoPark had established itself as the first private oil $338
and gas operator in Chile.

(US$ mil-
Net Rev-
enue

lion)
2008: IFC helped facilitate a gas pre-sale financing agreement for US$40 $6
$45
million with Methanex, a methanol producer in Chile. Methanex was
looking to pre-order stable gas off-take, which enabled GeoPark to 2006 2009 2013
accelerate its Fell Block debt.
13.5
2008-9: IFC participated in 3 additional equity rights issues, the proceeds

Production
(thousand
boepd)
of which helped GeoPark to further expand operations.
6.3
2011: IFC acquired 12.5% working interest in the GeoPark-operated 1.4
unincorporated joint venture in the Otway exploration block in Chile (has
since been divested). 2006 2009 2013
February 2014: GeoPark was listed on the New York Stock Exchange 61.6
under ‘GPRK’.
42.2
(mmboe)
serves
2P Re-

Although GeoPark has now achieved financial independence, the 29.2

company continues to seek IFC’s advice on topics ranging from

expansion into challenging markets to how to devise a environmental and
social action plan for maximum development impact. 2006 2009 2013

20
Delonex Energy Limited
WITH ITS KNOWLEDGE AND RESOURCES, IFC SUPPORTS ITS
CLIENTS AT EVERY CRITICAL JUNCTURE
Delonex Energy Limited is an early-stage E&P company that seeks to build a portfolio of East and Central African oil and gas
assets. The portfolio will be built up through acquisitions, farm-ins, and direct awards from host governments.

In January 2013, IFC approved an equity investment of up to US$60 million in Delonex. IFC’s investment is part of a US$600 million equity
line that will be disbursed as needed based on the company’s achievements.

As a start-up company, Delonex has no producing assets, and as such, needed to offer a unique investment product to raise capital at
favorable terms. IFC played a key role in structuring such a product.

In addition to helping structure a tailor-made product, IFC

provides additional added value to Delonex as well.

Because Delonex is new E&P company in the frontier East

and Central Africa region, IFC’s participation provides political
risk mitigation comfort to the company to its investors.
Delonex intends to enter countries including Ethiopia, South
Sudan, Madagascar, Mozambique, Tanzania, Kenya, Uganda,
and Chad. With IFC as its partner, Delonex is able to tap IFC’s
knowledge of and experience in investing in these risky
countries.

Additionally, a long-term partnership with IFC will provide

Rift Basins:
support for Delonex’s future growth plans through additional
Permo-Triassic (PT) equity and/or debt.
Cretaceous
Tertiary
Delonex views IFC as a key resource in its efforts to
African – Indian
Passive Margin Basins implement robust environmental and social standards and
corporate governance policies in its operations.

21
IFC Oil & Gas Track Record
DIVERSIFIED COMMITTED $2.2 BILLION OIL & GAS PORTFOLIO
52 projects in over 30 countries (June 30, 2014)

BY PRODUCT BY REGION
SOUTHERN & EASTERN WORLD
EUROPE 1%
10%
EQUITY* SENIOR DEBT & EQUIV-
31% ALENTS
69% SUB-SAHARAN AFRI
22%

ASIA
17%

LATIN AMERICA
35%
MIDDLE EAST & NORTH
AFRICA
15%

23 *Equity at market value

SELECTED INVESTMENTS: LATIN AMERICA

Colombia Colombia Paraguay Colombia Colombia Argentina

Pacific
EXMAR LNG Pacific Midstream President Energy Infrastructure PetroNova Medanito
$240,000,000 $380,000,000 $24,000,000 $150,000,000 $30,000,000 $48,000,000
Syndicated Project Equity Investment and Equity Investment Equity Investment Equity Investment Equity Investment
Financing AMC Mobilization
Mandated Lead Arranger Lead Equity Investor Investor Investor (with AMC) Investor (with AMC) Investor (with AMC)
Ongoing December 2014 December 2013 December 2013 September 2012 July 2011

Brazil Argentina Peru Peru Peru Argentina

Constellation Pan American

Overseas CAPSA BPZ Energy Maple Energy Peru LNG Energy
$103,000,000 $60,000,000 $75,900,000 $10,000,000 $300,000,000 $550,000,000
Equity Investment Corporate Facility Convertible Notes, Reserve- Equity Investment Syndicated Project Financing Syndicated Corporate Loan
Based Facility & Equity
Investor Lender Investor & Lender Investor Lender Mandated Lead Arranger
April 2010 December 2009 2006 - 2009 July 2007 June 2007 June 2007

24
SELECTED INVESTMENTS: AFRICA

Nigeria Nigeria Gabon Africa Region Cote d’Ivoire

Seven Energy Seven Energy VAALCO Delonex Energy Rialto Energy

$50,000,000 $105,000,000 $65,000,000 $60,000,000 $20,000,000
High Yield Bond Equity Investment Reserve-Based Loan Facility Equity Investment Equity Investment

Investor Investor (with AMC) Lender Investor Investor (with AMC)

October 2014 April 2014 January 2014 November 2013 January 2012

Ghana Ghana Gabon Africa Region Mozambique

Kosmos Energy Tullow Oil VAALCO Afren ENH Mozambique

$100,000,000 $165,000,000 $40,000,000 $1,000,000 $18,500,000
Senior Loan Senior Loan Revolving Credit Facility Equity Investment Equity Investment

Mandated Lead Arranger Mandated Lead Arranger Lender Investor Investor

2009, 2012 2009, 2011 January 2005 April 2005 February 2004

25
SELECTED INVESTMENTS: EUROPE / MENA

Turkey Egypt, Algeria, Albania Tunisia

Bulgaria

TransAtlantic Petroceltic Bankers Petroleum Candax Energy

$80,000,000 $100,000,000 $67,000,000 $10,000,000 Equity
Reserve-Based Lending Senior Loan Senior Loan & Equity Investment

Mandated Lead Arranger Mandated Lead Arranger Investor & Lender Investor & Lender
May 2014 April 2013 2009, 2012, 2013 January 2012

Kuwait Tunisia Egypt

Kuwait Energy Topic Melrose Resources

$165,000,000 $40,000,000 $1,000,000
Senior Loan Revolving Credit Facility Seed Equity Investment

Investor Investor & Lender Investor

2009, 2011, 2012 October 2008 November 2006

26
SELECTED INVESTMENTS: ASIA

China Thailand & Indonesia India Thailand & Indonesia

ENN Energy Salamander Energy Cairn Energy Salamander Farm-In

$75,000,000 $117,500,000 $271,000,000 $25,000,000 Equity
Senior Loan Senior Revolving Credit Facility & Credit Facility & Equity Investment Investment
Junior Term Loan Mandated Lead Arranger &
Mandated Lead Arranger Lender Investor Investor
2013 2008, 2009, 2011 2007, 2009 January 2009

India Vietnam

Punj Upstream SOCO

$30,000,000 Debt $45,000,000
/ Equity Financing Credit Facility

Investor & Lender Lender

September 2008 September 2005

27
SELECTED INVESTMENTS: GAS / LNG

China Dom. Republic Peru Turkey India

ENN Energy Linea Clave Calidda IZGAZ GSPC Gas

$75,000,000 $5,000,000 $50,000,000 $51,000,000 $15,000,000
Senior Loan Junior Term Loan Junior & Senior Term Loans Senior Term Loan Equity Investment

Mandated Lead Arranger Lender Lender Lender Investor

2013 January 2010 March 2010 June 2009 September 2008

India Peru India Romania Colombia

GSPL Peru LNG Petronet LNG DistrigazSud Promigas

$89,000,000 $300,000,000 $150,000,000 €49,000,000 $50,000,000
Equity Investment & Term Loan Syndicated Project Financing Syndicated Corporate Loan Equity Investment Credit Facility

Investor & Lender Lender Lender Investor Lender

October 2007 January 2007 April 2007 February 2006 December 2005

28
IFC OIL & GAS: GLOBAL COVERAGE

GLOBAL OIL & GAS

Lance Crist Global Head Washington, DC +1 202 473 0773 lcrist@ifc.org
Olivier Mussat Chief Investment Officer Washington, DC +1 202 458 0244 omussat@ifc.org
Haran Sivam Principal Investment Officer Washington, DC +1 202 473 4591 hsivam@ifc.org
Jorge Bongiovanni Principal Engineer Washington, DC +1 202 458 1796 kolsen@ifc.org
Didier Savary Principal Engineer London, UK +1 202 580 8410 dsavary@ifc.org

EUROPE / MENA / AFRICA

Ignacio de Calonje Principal Investment Officer London, UK +44 207 542 8400 idecalonje@ifc.org
Karsten Fuelster Principal Investment Officer Istanbul, Turkey +90 212 385 2550 kfuelster@ifc.org

LATIN AMERICA
Aldo Malpartida Senior Investment Officer Lima, Peru +51 1611 2568 amalpartida@ifc.org

ASIA
Michael Sheng Principal Investment Officer Washington, DC +1 202 473 3679 msheng@ifc.org

29