Afreximbank Approves $200 Million to Support Algeria’s Major Hassi Bir Rekaiz Oil and Gas Development
The African Export-Import Bank (Afreximbank) has approved a $200 million financing package to support Shoreline Power Company Limited and Italy’s Arkad SpA in the development of the Hassi Bir Rekaiz (HBR) Phase 2a oil and gas project in Algeria, one of the country’s largest upstream energy developments.
The financing will enable Arkad to execute its 44% share of the $980 million engineering, procurement and construction (EPC) contract awarded by Groupement Hassi Bir Rekaiz (GHBR), a joint venture comprising Algeria’s Sonatrach, Thailand’s PTTEP and Spain’s CEPSA.
The package includes a $110 million contract finance facility to support performance guarantees and working capital requirements, as well as a $90 million revolving credit facility that will fund future pipeline and energy infrastructure projects undertaken by Shoreline Power and its affiliated companies.
The HBR Phase 2a development will include the construction of a new central processing facility, significantly increasing production at the Hassi Bir Rekaiz field.
Once completed, oil output is expected to rise from approximately 13,000 barrels per day to between 50,000 and 60,000 barrels per day, strengthening Algeria’s oil and gas production capacity and supporting the country’s long-term energy strategy.
According to Afreximbank, the financing aligns with its objective of increasing the participation of African engineering, procurement and construction companies in large-scale energy projects across the continent.
The transaction marks the first time the bank has financed a Sub-Saharan African EPC contractor working on a major infrastructure project in North Africa.
Kanayo Awani, Executive Vice President for Intra-African Trade Finance and Export Development at Afreximbank, said the facility demonstrates the bank’s commitment to strengthening Africa’s engineering and construction sector while promoting intra-African trade.
She noted that the financing will not only accelerate the development of Algeria’s energy infrastructure but also create new opportunities for African contractors to participate in high-value projects across the continent.
The investment highlights Afreximbank’s growing role in financing strategic energy infrastructure and supporting greater African participation in the development of the continent’s oil and gas industry.
