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Projects

Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Apache Egypt
Project ID
10572
Fiscal year
2013
Status
Active
Guarantee holder
Overseas Private Investment Corporation (OPIC)
Investor country
United States
Host country
Egypt, Arab Republic of
Environmental category
A
Sector
Oil and Gas
Date SPG disclosed
April 11, 2012
Project Board date
June 14, 2012
Gross exposure
 $150.0 million
Project type
Non-SIP
Strategic priority area
Complex Project
ESRS
Apache Egypt ESRS

This summary covers MIGA’s proposed reinsurance of the Overseas Private Investment Corporation’s (OPIC) coverage to Apache Corporation for its investments into its subsidiaries in Egypt. OPIC has applied for reinsurance of up to $150 million for a period of up to 13 years against the risks of expropriation and breach of contract. The project covered by OPIC involves existing and future exploration, development and production of crude oil, natural gas and condensate for which multiple concession agreements have been granted by the government of Egypt.

MIGA’s support to OPIC is in accordance with MIGA’s mandate to cooperate with national entities of its member countries, as stated in MIGA’s Convention. By providing facultative reinsurance, MIGA is enabling OPIC to provide the amount of coverage Apache has requested and was not available from private market insurers.

Environmental Categorization

The project is a category A under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact

This proposed project entails the reinsurance of a pool of new and existing investments by Apache. Apache, through its existing and planned additional investments, not only signals its intention to stay in Egypt, but to expand operations. Apache also provides technical training in new technologies to Egyptian nationals working in the joint ventures, contributes to the modernization and efficiency of the oil and gas production sector, and is playing a critical role in helping Egypt’s supply of energy products to keep up with domestic demand. MIGA’s primary role will be to signal its support for companies investing into a critical sector in Egypt.

In addition, the project is consistent with MIGA’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa. 

 
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