The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, announced the completion of an innovative Sharia-compliant financing facility for Oil Recovery Services SAL (ORSsal) in Algeria.

The financing was arranged in conjunction with Paris-based oil and gas private equity firm 4D Global Energy Advisors (4D GEA).

The facility is the first of its kind for Apicorp in the Algerian market, and is dedicated to support a service contracting company working for Sonatrach.

In March 2015, ORSsal was awarded a $47.6 million in Algeria by Sonatrach for providing drilling/completion fluids, waste management and engineering services over a period of three years. The purpose of the facility is to finance part of the cost of the equipment and to cover the working capital requirements for implementing the contract. The initial $10 million financing provided by Apicorp will act as a template for the financing of several other contracts in the pipeline.

Dr Raed Al Rayes, deputy CEO and general manager of Apicorp, said: “Completing this facility for ORSsal is a timely step for Apicorp, as it helps us strengthen our position in the Algerian lending market, which is consistent with Apicorp’s objectives to develop the energy sector in the Arab world. The facility will also help Apicorp take advantage of other attractive business opportunities available within the Algerian market for years to come.”

“This facility once again demonstrates Apicorp’s expertise in providing innovative financing solutions to meet the needs of various projects,” he added.

Tighe Noonan, the founder of 4D, said: “We very much appreciate the support of Apicorp. To be now working together in what we view as a strategic partnership is a source of pride and ongoing motivation both for ORSSAL and for the team at 4D Global Energy Advisors.  Apicorp’s leadership in bringing us together to this milestone will not be forgotten.”

Zaher Qattar, founder and CEO, ORSsal, said: "We must thank Apicorp’s Corporate Finance team for arranging this innovative financial facility. We are confident that this collaboration will help support the continuous growth of ORSsal business in Algeria, and other major international markets.”

Last month, Apicorp issued its annual Mena Energy Investment Outlook Report, which stated total committed and planned energy investments in the Mena region, including Iran, will reach $900 billion over the next five years. According to the report, Algeria will invest $8bn on gas as it focuses on developing its midstream sector as part of the country’s plan to expand total pipeline-network capacity by 30 per cent. – TradeArabia News Service