CEOC was established in 2009 with backing from Barclays Natural Resource Investments (BNRI), a natural resources focused global private equity business of Barclays Capital, the investment banking division of Barclays Bank PLC.
"Primary hydrocarbon recovery operations typically result in production of a fraction of a reservoir's original volume of oil and gas. Further development requires additional investment, expertise and advanced technologies that are in limited supply in central and eastern Europe. This has resulted in a number of mature and underdeveloped hydrocarbon resources in the region with underutilised reserves and production potential," EBRD reported.
Through this investment the EBRD is becoming a minority shareholder in CEOC alongside BNRI and the company’s senior management, aiming to support the company in its drive to redevelop a number of mature and underdeveloped hydrocarbon reservoirs in central Europe.
The EBRD’s participation is aimed at ensuring strict adherence to EU environmental, health and safety standards. The project will also contribute to the transfer of skills in the upstream sector and will assist in setting high standards for corporate governance and environmental and social responsibility for industry in the region.
CEOC has signed cooperation agreements with the Hungarian oil company MOL and with the Croatian oil and gas company INA and is considering similar opportunities with other operators in the region. The Bank’s funds will be used to co-finance CEOC’s planned capital expenditures, including implementation of advanced recovery methods, infield drilling of new wells and re-completion of existing wells that will increase oil and gas production and reserves.
“The current dependency of central Europe on oil and gas imports makes development of indigenous production an important priority. By investing into the Central Europe Oil Company, the EBRD is supporting the introduction of advanced hydrocarbon recovery technologies in the region. This project will also raise the environmental standards in the sector,” said Kevin Bortz, EBRD Director for Natural Resources.
“We are delighted to welcome the EBRD as a fellow shareholder in CEOC and look forward to working with them and management as CEOC develops opportunities in Central and Eastern Europe,” said Meb Somani, Head of Oil and Gas Investment at BNRI.
"We are proud to have the EBRD as our shareholder and we hope that with the Bank’s support we shall grow and expand our activities to the other countries," said Andrija Kojakovic, CEO of Central Europe Oil Company.
Since the beginning of its activity, the EBRD has committed over €3.4 billion in the natural resources sector in countries of its operation.
