Cameroon

Pecten Cameroon Company (Pecten, the Company) is a Delaware corporation that has been involved in the exploration for and production of hydrocarbons in Cameroon since 1974. Pecten is owned 80% by a subsidiary of Shell Oil Company, which itself is wholly owned by Royal Dutch Shell. The remaining ownership is held by Société Nationale des Hydrocarbures (SNH), the national oil company of Cameroon, which is responsible for developing and exploiting the country's hydrocarbon resources. Pecten in partnership with Elf Serepca, an affiliate of TotalFinaElf, account for 90% of Cameroon's crude oil production. Pecten and Elf Serepca have interests in 46 oil fields located in nine concession areas, two of which are operated by Pecten with the rest operated by Elf Serepca. Oil from the concessions are produced from offshore platforms, which are linked through pipes and production facilities to floating storage vessels at the Kole terminal for the Rio del Rey fields and the Moudi terminal for the Lokélé fields. The oil is offloaded from these storage vessels to oceangoing tankers for transport to market destinations.

IFC's relationship with Pecten dates back to 1992. Four loans to Pecten have been arranged by IFC from that time, the latest being a 10-year US$250 million revolving line of credit facility completed in 1998. This revolving line of credit, which, to the best of IFC's knowledge, was the first done in Africa was instituted in response to Pecten's financing needs. Pecten previously financed its development activities through distinct project financings but this approach had proven to be time-consuming, inefficient and expensive. IFC arranged this revolving credit to remove the need for repeated financings. This facility combines the features of a revolving credit with those of a term loan and a borrowing base facility, a responsive way of meeting Pecten's funding needs in a flexible manner over the given time period. The financing is used, inter alia, to drill additional wells, rehabilitate existing wells, install platforms and construct additional production facilities.

Pecten has performed well consistently over the years. It continues to undertake cost reduction and production optimization programs that have maximized output and value for the Company, particularly in times of favorable oil prices. Profitability notwithstanding, Pecten is recognized as a pacesetter in Cameroon for its business ethics and performance regards safety and the environment.