Circle Oil: IFC funding

The World Bank’s International Finance Corporation (IFC) is considering debt financing to fund the exploration and development of Circle Oil’s operated assets in Morocco and non-operated assets in Egypt and Tunisia. The loan proposal is due to go to the IFC board on 21 June. In its 2012 results announced on 13 May, Circle reported revenue of $73.3m, up 26% over 2011, and cash from operations of $39.3m, up 243% year on year, helped by increased production of Egyptian oil and Moroccan gas, higher market prices, and improved payment receipts from Egyptian General Petroleum Corporation. Libya Oil Holdings (LOH)’s 17.75% shareholding in Circle has been frozen since March 2011. Ahmed Kashadah, the head of the Libyan African Portfolio which owns LOH, has asked for the Portfolio’s assets to remain frozen as it is not ready to take on LOH’s management.