Jeddah, KSA: The Aa3 rated Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank Group, recently announced that it has provided US$ 80 million reinsurance support to the Overseas Private Investment Corporation (“OPIC”) for the latter’s political risk insurance policy to Apache Corporation (Apache). The policy was issued to Apache to cover its investment in the Ara b Republic of Egypt against political risks for a tenor in excess of five years.
Apache’s project in Egypt (Apache Egyp”) involves exploration of oil and gas under various concessions granted by the Government of Egypt in several locations in Egypt 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, the total headcount of the joint ventures is approximately 10,000 staff, 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.
“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,” Hani Salem Sonbol, the Acting Chief Executive Officer of ICIEC commented on this transaction said.