The African Export-Import Bank (Afreximbank) has approved a $200 million financing facility to support Shoreline Power Company Limited and Arkad SpA as they participate in the Hassi Bir Rekaiz (HBR) Phase 2a field development project in Algeria. The project ranks among the country’s largest upstream oil and gas developments.
The funding will cover Arkad’s 44% share of the $980 million engineering, procurement and construction (EPC) contract awarded by Groupement Hassi Bir Rekaiz (GHBR), a joint venture between Sonatrach, PTTEP and CEPSA. Approved in June, the package includes a $110 million contract finance facility for performance guarantees and working capital, alongside a $90 million revolving facility that will finance future pipeline and energy infrastructure projects led by Shoreline and its affiliates.
The HBR Phase 2a project will deliver a new central processing facility that is expected to raise production at the Hassi Bir Rekaiz field from about 13,000 barrels of oil per day to between 50,000 and 60,000 barrels per day, increasing Algeria’s oil and gas production capacity.
Afreximbank said the financing aligns with its goal of increasing the participation of African engineering and construction companies in major energy projects across the continent. The bank is providing the funding through its EPC Initiative, marking the first time it has financed a Sub-Saharan African contractor working on a major infrastructure project in North Africa.
Kanayo Awani, Executive Vice President for Intra-African Trade Finance and Export Development at Afreximbank, said the financing reflects the bank’s commitment to supporting African contractors and strengthening trade within the continent. She added that the facility will help advance Algeria’s energy infrastructure while expanding opportunities for African engineering and construction firms.
source: worldoil.com
African Energy Council