Borrowing and Obtaining Facilities

To access necessary financing and facilities, Mediterranean Gold Drilling Company engages with banks and financial institutions in Libya. This involves obtaining various financial instruments and resources to support its operations and growth initiatives

Loans: The company may secure loans from banks to acquire capital for purchasing equipment, constructing facilities, or funding exploration and drilling projects. These loans are typically structured with predetermined repayment terms and interest rates tailored to the company’s financial needs and capabilities

Lines of Credit: Lines of credit provide the company with flexible access to funds for short-term financing needs. They allow Mediterranean Gold Drilling Company to draw funds as needed, up to a predetermined credit limit, to cover operational expenses, working capital requirements, or unforeseen expenses during drilling campaigns

Project Financing: For large-scale drilling projects or infrastructure development initiatives, the company may seek project financing from financial institutions. Project financing involves structuring loans or financing arrangements specifically tied to the cash flows generated by the project itself, minimising the company’s overall financial risk

Asset-Based Financing: Asset-based financing involves using the company’s assets, such as drilling equipment, real estate properties, or accounts receivable, as collateral to secure financing from banks. This allows Mediterranean Gold Drilling Company to leverage its assets to access additional capital for expansion or operational needs

Trade Finance: Trade finance facilities enable the company to facilitate international trade transactions, such as importing drilling equipment or exporting petroleum products. Trade finance instruments may include letters of credit, bank guarantees, or trade finance loans, which mitigate payment and performance risks associated with cross-border transactions

Islamic Financing: In accordance with Sharia principles, the company may also access Islamic financing products offered by Islamic banks or financial institutions. These may include Murabaha (cost-plus financing), Ijara (leasing), or Musharaka (partnership) arrangements tailored to comply with Islamic finance principles

By leveraging these financial resources and facilities from banks and financial institutions, Mediterranean Gold Drilling Company can effectively manage its capital requirements, optimize its financial structure, and support its strategic initiatives for growth and expansion in the oil and gas sector