Hydrocarbon Research Block Rhourde Yacoub

MIGA reinsured Compañía Española Seguros de Crédito a la Exportación for a portion of its coverage of the $240 million investment to be made by CEPSA of Spain in an oil and gas project. MIGA reinsurance of $10 million covers the risks of expropriation and war and civil disturbance.

The project enterprise, located in Rhourde Yacoub, is a production-sharing agreement with Sonatrach, an Algerian public company. About 50 employees will be hired and will receive language training and technical training in research, exploration, and development of oil and gas fields. Staff will also receive housing, transportation, and medical services. Local businesses providing rental equipment, transportation, food,f uel, and construction services will also benefit. The project will generate an estimated $65 million in annual foreign exchange for the country.