The African Export-Import Bank (Afreximbank) has approved a $200 million financing facility to back Shoreline Power Company and Arkad SpA’s role in the Hassi Bir Rekaiz (HBR) Phase 2a field development, one of Algeria’s largest upstream infrastructure projects.

The financing supports Arkad’s 44% share of an $980 million engineering, procurement and construction (EPC) contract awarded by Groupement Hassi Bir Rekaiz, a joint venture of Sonatrach, PTTEP and CEPSA. Approved in June, the package includes a $110 million contract finance tranche to cover performance guarantees and working capital, plus a $90 million revolving facility to finance future pipeline and energy infrastructure projects by Shoreline and its affiliates.

The HBR Phase 2a project centres on a new central processing facility expected to lift output at the field from around 13,000 barrels per day to between 50,000 and 60,000 bopd, a major boost to Algeria’s oil and gas production capacity.

Afreximbank said the deal, executed under its EPC Initiative, marks the first time it has financed a Sub-Saharan African contractor delivering a major infrastructure project in North Africa. Kanayo Awani, the bank’s Executive Vice President for Intra-African Trade Finance and Export Development, said the transaction advances both Algeria’s energy infrastructure and intra-African trade in engineering and construction services. Afreximbank estimates the project will generate around 6,000 jobs and strengthen regional supply chains as development activity continues across the continent.

Source: worldoil.com