•      q          .   .

               ·       FOR.
                          . IMMEDIATE
                               .    ..RELEASE .



    •World Bank
         1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234




                             IDA NEWS RELEASE NO. 82/85                                   Contact: Hugh Blackman
                             June 14, 1982                                                         ( 202) 477-3879

                                         NEPAL TO PROMOTE PETROLELt-1 EXPLORATION PROMOTION WITH IDA ASSISTANCE

                                    Nepal will carry out a petroleum exploration promotion project with the
                             assistance of an SOR 8.3 million ($9.2 million) from the International Development
                             Association (IDA), the World Bank's concessionary lending affiliate. The $10.9
                             million project aims at attracting foreign oil companies to undertake petroleum
                             exploration in the country.
                                    In 1980, IDA helped the Nepal government to finance an aeromagnetic survey in
                             the country's Terai Basin, the results of which showed evidence of geological
                             structures capable of trapping oil and gas. The present project will carry out a
                             reconnaissance seismic survey of 800 line-kilometers in the same area to identify


    •                        the most prospective sections. The results of the survey will then be made
                             available to interested oil companies. Project consultants will help conduct rock
                             sampling and geochemical analyses to assess the petroleum potential of rock
                             formations.
                                    Consultants will also assist the Department of Mines and Geology, the
                             implementing organization, in supervisinq and evaluating the seismic survey, as well
                             as in the preparation of a promotional report. A legal consultant will help the
                             government in subsequent negotiations with the oi 1 companies. Petroleum and
                             geophysics courses and on-the-job training will be provided to the department's
                             staff to strengthen their capabilities.

                                    The IDA credit is for 50 years, including 10 years of grace. It carries no
                             interest but bears a small annual commitment charge of 0.5% on the undisbursed
                             balances of the credit and a service charge of 0.75% on the disbursed balances.
                                    The IDA-assisted project in Nepal is part of the World Bank's effort to
                             promote petroleum exploration in oil-importing developing countries. Among those
                             countries which have recently received World Bank support for this purpose are Kenya
                             and Zambia in East Africa, Mauritania in West Africa, and Yemen Arab Republic in the
                             Middle East.

                             NOTE:   IDA credits are denominated in SDRs (Special Drawing Rights) which
                                     are valued on the basis of a "basket" of currencies. The U.S. dollar


    ••
                                     equivalent of the SOR amount of the IDA credidt reflects the exchange rates
                                     existing at the time of negotiation of the credit •




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