Californian private oil and gas company, Synergy has secured financing from Munich Re, a global reinsurance company, to restore coastal wetlands on a 140-acre site in Long Beach.
Synergy aims to use the funds to restore Los Cerritos wetlands and further develop a wetlands mitigation bank project.
John McKeown, CEO and Principal of Synergy, said: “Synergy is very pleased to begin this relationship with Munich RE. This new financing provides us the funds we need and enables us to immediately begin the abandonment of the Synergy Oil Field and the restoration of 156 acres of prime coastal wetlands. It is a huge win for everyone, especially the communities of Long Beach and Seal Beach.”
According to the announcement, the allocated funds from Munich Re’s financing will play a pivotal role in Synergy’s efforts to plug and abandon (P&A) legacy wells while creating a permanent wetlands conservation site.
“We are glad to provide this financing solution to Synergy for a significant project that will benefit many stakeholders, including the City of Long Beach and communities that neighbour the Los Cerritos wetlands,” commented Vikram Nath, Managing Director of Energy Transition Finance at Munich Re.
Synergy noted that, as the transaction progresses, further details on the utilisation of funds and the expected outcomes will be communicated.
