Viking, together with its subsidiaries, is an integrated oilfield services provider operating primarily in Turkey, northern Iraq and central eastern Europe. Headquartered in Istanbul, Viking provides well drilling, seismic, and well completion services to exploration and production operators.

Viking is owned 50% by Dalea Investment Group, 28.57% by Abraaj Group, and 21.43% by XRC Viking Limited ("BXR"). Dalea is an investment vehicle controlled by Noah Malone Mitchell 3rd, an American oil and gas veteran with over 25 years of experience in the industry. BXR is owned by Shareholders of BXR Group, an international private investment group with a 15 year track record. Abraaj is a leading Dubai based private equity manager founded in 2002. It currently manages approximately $7.5 billion across 25 sector and country-specific funds.

Total project cost is estimated at $125 million and IFC’s proposed investment is an A loan of up to $50 million.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

Expansion of the company’s oilfield services are expected to be mainly in Turkey and northern Iraq.

i. Development of the hydrocarbon sector in Turkey and Iraq: The Thrace Basin in Turkey is the country''s largest producing gas province providing opportunities for gas exploration. Any gas produced in the Thrace Basin is going to be used domestically. Being the main private oil services company in Turkey, the company will help oil and gas operators develop indigenous hydrocarbon resources and thus contribute to the country''s goals of reducing energy dependence and displacing other fuels with natural gas. As Iraq hopes to significantly boost its output capacity which continues to be crucial for the country''s economic recovery, the company''s oilfield services are an important contribution to sector development in the region it operates.
ii. Increased competition in the service sector: The company''s competition in Turkey is generally of poor quality and high cost. Through establishing and expanding its operations, the company will aim to provide more competitive pricing for its services, and offering improved quality and response times in Turkey.
iii. Employment and training: The company currently employs an international workforce of roughly 1,100, almost 90% of which are local hires. Viking has been actively developing local talent and hiring locally has been key in its community engagement strategy. If it is successful in its expansion plans, it is expected to need additional employees in its markets of operations. Creating and preserving jobs in the sector that currently lacks qualified providers will have positive benefits for these markets in helping create local expertise through employment and training.

i. Provision of medium-term financing: The company is a young oilfield service provider aiming to expand in markets where high quality services remain relatively scarce. It seeks to raise financing for its expansion and growth plans, which are focused on Turkey and Iraq in the near term. Given the current political situation in Iraq and other part of Middle East, IFC''s participation in the financing is significant.
ii. Stamp of Approval: The company has just gone through an equity sale and reorganization recently, aiming for an IPO in medium term. IFC''s financing would enhance the company''s financial credibility, which would have a positive impact on the future IPO.
iii. Global and regional knowledge on the upstream oil and gas sector: Through IFC''s participation in the project, the Company will also benefit from IFC''s global and regional experience and knowledge on the upstream oil and gas sector and players in its future expansion.

The Company owns its equipment with which it bids for onshore oilfield service contracts offered by exploration and production (“E&P) companies. Viking’s activities have a potential for limited environmental and social impacts that are mainly site specific, largely preventable and/or reversible, and that can be addressed through the development of specific mitigation measures and proper implementation.

Given the scope and scale of the potential impacts associated with this project, it has been identified as a Category B project under IFC’s 2012 Policy Social and Environmental Sustainability.

Environmental Health & Safety Guidelines that are expected to be relevant to this investment include applicable parts of:

General EHS; and
Onshore Oil and Gas Development

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.