ISLAMABAD, May 25: The International Finance Corporation, the private sector arm of the World Bank, has signed a $25 million financing package for Rally Energy

Corp, to support upstream oil and gas projects in Pakistan and Egypt.

With its investment, IFC will help strengthen energy production to meet increasing domestic demand, says a message received from Washington here on Thursday.

Somit Varma, IFC’s associate director for Oil and Gas said, “Companies like Rally are important participants in the hydrocarbon sectors of developing countries as they help develop domestic resources to satisfy growing demand.

Importantly, they also bring revenues to governments and create employment as well as opportunities for local suppliers of goods and services.

Working closely with IFC, the company is implementing comprehensive steps, including training, to ensure sound environmental and social management of its projects.

In Egypt, mining and hydrocarbon sector plays a significant role in the country’s economy, generating about 15 per cent of GDP, 37 per cent of export earnings, and the bulk of foreign investment.

However, oil exports from Egypt have been under pressure as production at oil fields has fallen and domestic consumption has increased.

In Pakistan, Rally’s joint venture will strengthen domestic natural gas supplies as the increasing demand of gas may lead to a shortfall in domestic supply and to potential gas imports.

Rally has a 22.5 per cent non-operating interest in the Safed Koh block in Punjab in central Pakistan, which is operated by its partner Dewan Petroleum Pvt. Ltd.

The block includes the Salsabil gas and condensate field that will be developed as a part of the project.

Rally and its partners will also explore prospects for additional gas reserves in the block. Natural gas from the project will strengthen fuel supplies to industrial and urban markets in the region.

In addition, this strategic long term investment by the IFC, as lender and potential equity partner, will provide Rally with continued access to competitive and sustainable financing arrangements to fund planned and future growth opportunities both in Pakistan and Egtpt.—APP