IFC to finance Nigerian oil and gas subcontractors in Niger Delta

International Finance Corp says it will help finance a $ 30 mm credit facility for Nigerian oil and gas subcontractors in the Niger Delta. Part of the World Bank Group, IFC will provide $ 15 mm for the revolving credit facility in partnership with Shell and an unnamed Nigerian bank. The three will share risks on the to oil services companies.
The IFC said it will review the individual loans to ensure they meet with its environmental standards. It plans to eventually expand the credit program to other Nigerian banks and oil producers. "We recognize that the insufficient flow of benefits to local communities has been one of the main problems in the Niger Delta," IFC Executive Vice President Peter Woicke said. The credit will be offered to small- and medium-sized companies that are either locally owned or that primarily employ local residents.

It is meant to build a base of local service contractors and thereby raise employment and generally broaden benefits of the regional oil production, IFC said. Environmental groups criticized the IFC for working with Shell and for what they said was neglect of local communities' views. The groups said they had a "tense" meeting with IFC staff to voice their objections.
Foreign multinationals like Shell, Chevron and ExxonMobil operate most of Nigeria's wells through joint ventures with state-owned Nigeria National Petroleum Corp. The joint ventures have often been targeted by protesters who say they are polluting the environment and neglecting the people of the oil-rich Niger Delta.