Kazakh oil producer Zhaikmunai is in talks with lenders about possible waivers on its debt covenants after “various events of default” led to a $100m credit line being cut off, Reuters reported.
Zhaikmunai said that it aims to refinance debt via a $300m placement of global depository receipts, which would also help fund spending plans.
“The proceeds of the placing will be used to supplement the group’s existing credit facilities and fund in part the capital expenditure programme for the Chinarevskoye field, in particular the completion of the gas treatment unit,” the company said in a statement.
The firm produced 7,615 barrels per day in the first quarter of this year and plans to raise output to 48,000 barrels per day in 2010.
“Zhaikmunai has continued negotiations with its existing lenders under the facility regarding potential waivers of the outstanding events of default,” the statement said.