June 5, 2016 / 4:42 PM / in 2 years

Chile state oil firm ENAP to seek outside financing in 2016 -report

SANTIAGO, June 5 (Reuters) - Chilean state oil company ENAP plans to solicit outside financing this year to fund an ambitious $800 million investment plan for 2016, a local newspaper reported on Sunday.

“We have an elevated level of investments that we are realizing this year, and that will require us to go out and look for new financing,” ENAP Chief Executive Officer Marcelo Tokman told Chile’s La Tercera in an interview.

“The amount will depend on the market conditions at the moment in which we decide to go out (and seek the funds).”

The company’s last debt offering was in 2014 when the oil firm sold $600 million of bonds at 3.375 percent.

Though Tokman did not specify the quantity of outside funds ENAP would seek, ENAP Chief Financial Officer Ariel Azar told Bloomberg last year the company was considering a bond issue in the $500 million to $700 million range.

“We’re not in a rush; it will be during this year,” Tokman said.

“We’re looking for the best conditions possible.”

Among the areas of investment for ENAP is gas exploration in Chile’s southern Magallanes region and safety studies after a large oil spill polluted a major harbor in May.

ENAP, Chile’s main oil refiner and a key provider of fuel to the domestic market, has oil exploration projects inside and outside the nation, but produces little crude. (Reporting by Gram Slattery; Editing by Jeffrey Benkoe)

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