MIGA Backs Private Investments in Egypt’s Energy Sector
Agency’s political risk insurance will help sustain critical private investment in a challenging time
View the press release in Arabic
Washington, October 4, 2012 - The Multilateral Investment Guarantee Agency (MIGA) announced today it is supporting private investment in Egypt’s oil and gas sector. The agency is providing reinsurance for the Overseas Private Investment Corporation’s (OPIC) political risk insurance policy to Apache Corporation and its subsidiaries for investments in Egypt. MIGA’s provision of long-term reinsurance to OPIC will allow Apache, an oil and gas exploration and production company, to maintain its insurance coverage after the private insurance market partially withdrew from Egypt following the recent political unrest.
MIGA is providing reinsurance of $150 million to OPIC for its $300 million coverage to Apache, held by the company since 2004. The reinsurance will be provided for an additional 13 years, against the risks of expropriation and breach of contract.
Apache is a critical contributor to Egypt’s oil and gas sector, supporting nearly 4,000 jobs. The oil and gas sector represents 25 percent of the government’s fiscal revenues and accounts for nearly 70 percent of foreign direct investment. The company is projected to invest as much as $1 billion per year over the next few years toward further exploration and development of existing and new petroleum prospects.
“Our cooperation with OPIC is allowing Apache to maintain its significant investment program and its operations during a challenging and turbulent time,” says Izumi Kobayashi, MIGA’s Executive Vice President. In parallel, the World Bank is providing technical assistance to the government to support energy sector reform efforts.
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi