Jeddah, KSA – The Aa3 rated Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank Group, recently announced that it has provided US$ 80 million reinsurance support to the Overseas Private Investment Corporation (“OPIC”) for the latter’s political risk insurance policy to Apache Corporation (“Apache”). The policy was issued to Apache to cover its investment in the Ara b Republic of Egypt against political risks for a tenor in excess of 5 years.
Apache’s project in Egypt (“Apache Egypt”) involves exploration of oil and gas under various concessions granted by the Government of Egypt in several locations in Egypt with main activities in the Western Desert. Apache’s commitment to Egypt began in 1994 with their first Qarun discovery well.
The Project provides employment opportunities for the locals in the country. As of the end of 2013, the total headcount of the joint ventures is approximately 10,000 staff, most of whom are local employees and contractors. Furthermore, the Project provides opportunities for developing the technical and managerial skills through daily operation and maintenance and through conducting training sessions for local employees.
Eng. Hani Salem Sonbol, the Acting Chief Executive Officer of ICIEC commented on this transaction and said that “ICIEC’s involvement in this transaction is in line with its strategy of supporting member countries with respect to retaining foreign direct investments in the country during this critical transitional period for Egypt”.
With Aa3 rating by Moody’s, ICIEC uses investment and export credit insurance to facilitate cross border investments and to encourage trade transactions in its 43 member countries in the Middle East, Africa and Asia. ICIEC provides these credit and country risk mitigation instruments in line with the Shariah.
OPIC is the U.S. Government’s development finance institution which was established in 1971. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance and support for private equity investment funds. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide.
Apache Corporation, formed in 1954, is among the world’s largest independent exploration and production companies and is based in Houston, Texas. Apache currently has exploration and production interests in six countries: the United States, Canada, Australia, the United Kingdom North Sea, Argentina and Egypt.