The Arab Petroleum Investments Corporation (Apicorp) has agreed to two loan facilities worth a combined $250 million with Sonatrach Petroleum Investment Corporation (SPIC), a subsidiary of Sonatrach International Holding in Algeria.

The first loan, a $100 million bilateral pre-financing facility, will be used to fund the maintenance of the Sonatrach Raffineria Italiana complex in Sicily, Italy, which Sonatrach acquired from ExxonMobil in December 2018. The second loan, a $150 million unfunded and syndicated letter of credit, is for the purchase Saudi Aramco crude oil by Sonatrach Raffineria Italiana.

Dr Ahmed Ali Attiga, CEO of Apicorp, said: “Apicorp is committed to supporting and financing Sonatrach in its first overseas acquisition. This is part of our mission to continue playing an active role in the development of our member countries’ broader energy sector and contribute to diversification and geographic expansion.

“As a trusted financial partner to the region’s energy sector, we remain steadfast in our mission to continue exploring opportunities in Algeria and other member states and provide solutions that drive innovation and bolster the sustainability of this vital industry.”

Nordine Bouteldja, managing director of SPIC said: “Our strategic investment in international refining through Sonatrach Raffinera Italiana will contribute to meeting local energy demand and address imbalances in petroleum supplies.

“This is of key importance to our efforts to diversify our energy assets and secure reliable supplies of crude oil, as part of our drive to meet local energy demand and address imbalances in petroleum supplies to the domestic market.”

Located in Augusta, Sicily, Sonatrach Raffineria Italiana is Sonatrach’s first overseas acquisition. The integrated refinery complex, which has access to the major global shipping routes through the Mediterranean Sea, boasts a conversion rate of200,000 bpd and can produce a wide range of downstream products, including gasoline, distillates, fuel oils, lubricants, asphalts and chemicals.

Earlier this year, Sonatrach designated Apicorp as one of a select group of financial institutions to provide advisory on project management and financing-related matters.

International legal firm Allen &Ovary’s Paris office was the legal advisor to Apicorp on the transactions. – TradeArabia News Service