Egypt: ICIEC partners with OPIC on oil and gas investments
Source: Middle East Insurance Review | Mar 2015
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank Group, has announced its provision of US$80 million reinsurance support to the Overseas Private Investment Corporation (OPIC) for the latter’s political risk insurance policy to Apache Corporation. The policy was issued to Apache to cover its investment in Egypt against political risks for a tenor in excess of five years.
Apache’s project in Egypt involves exploration of oil and gas under various concessions granted by the Government of Egypt in several locations in the country, with main activities in the Western Desert. Apache’s commitment to Egypt began in 1994 with their first Qarun discovery well.
The project provides employment opportunities for the locals in the country. As of the end of 2013, total headcount of the joint ventures stood at approximately 10,000, most of whom are local employees and contractors. Furthermore, the project provides opportunities for developing the technical and managerial skills through daily operation and maintenance and through conducting training sessions for local employees.
Eng Hani Salem Sonbol, Acting CEO of ICIEC said: “ICIEC’s involvement in this transaction is in line with its strategy of supporting member countries with respect to retaining foreign direct investments in the country during this critical transitional period for Egypt.”