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Projects

Project Brief

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
September 27, 2012
Gross exposure
 $150.0 million
Project type
Non-SIP
Strategic priority area
Complex Project
ESRS
Apache Egypt ESRS

View Summary of Proposed Guarantee


On October 2, 2012, MIGA issued a guarantee of $150 million providing reinsurance for the Overseas Private Investment Corporation’s (OPIC) coverage to Apache Corporation of the United States. The coverage is for Apache’s investments into its subsidiaries in Egypt. MIGA’s reinsurance coverage is 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 and 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.

This project entails the reinsurance of a pool of new and existing investments by Apache, an oil and gas exploration and production company. Apache, through its existing and planned additional investments, has signaled its intention to stay in Egypt and 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 keep up with domestic demand. By supporting these investments, MIGA is underscoring its support for companies investing in Egypt during a time of transition.

The project is also 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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