Dammam, 9 May 2016: The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank established in 1975 by the 10 member states of the Organization of Arab Petroleum Exporting Countries, announced the completion of an innovative Sharia-compliant financing facility for Oil Recovery Services SAL (ORS Sal), whose operations are based 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. As such, it showcases APICORPs ability and determination to diversify its investment geographically.

In March 2015, ORS Sal was awarded a US$ 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 US$ 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, commented: Completing this facility for ORS Sal is a timely step for APICORP, as it helps us strengthen our position in the Algerian lending market, which is consistent with APICORPs 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. 

Dr Al Rayes added: This facility once again demonstrates APICORPs expertise in providing innovative financing solutions to meet the needs of various projects.

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 ORS SAL and for the team at 4D Global Energy Advisors.  APICORPs leadership in bringing us together to this milestone will not be forgotten.

Zahi Kattar, Founder and CEO, ORS Sal, said: We must thank APICORPs Corporate Finance team for arranging this innovative financial facility. We are confident that this collaboration will help support the continuous growth of ORS Sal business in Algeria, and other major international markets.

Last month, APICORP issued their 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 countrys plan to expand total pipeline-network capacity by 30%.

ORS Sal is a limited liability company incorporated in Beirut, Lebanon with operations in Algeria. The Company is involved in Drilling Fluids and waste management services such as the treatment of tank bottom sludge, refinery slop oils, drilling waste and other oil-related waste streams. ORS Sal is a wholly owned subsidiary of ORS International Ltd. (ORSIL or the Group) incorporated in Jersey in 2013 with its executive office in Paris, France. ORSIL is presently 51% owned by Messrs. Zahi Kattar and Alain Mihelic and 49% by 4D Global Energy Investments Plc (4D GEI), the third private equity fund launched by 4D Global Energy Advisors (4D GEA). ORSIL also has operations in the US via its subsidiary, ORS Holdings Inc., and its operating company, ORS Fluids LLC.

4D Global Energy Advisors S.A.S. (4D GEA) is a Paris-based investment management company that specialises in the energy sector. The company was formed in 2002 by Mr. Jrme Halbout and Mr. Tighe Noonan.to establish private equity funds investing in the hydrocarbon value chain, advising on the selection of investments in energy companies and assisting their portfolio companies in the implementation of their financial strategy. Since 2003 4D GEA has managed a series of private equity funds dedicated to bringing development capital to companies active in the hydrocarbons value chain. The 4D funds provide capital to small and medium-sized companies and seek to invest across the value chain, bringing capital and expertise to each of the upstream, midstream, downstream and technology and services segments of the oil and gas industry.

For further information:
Iain Munro, Bell Pottinger
Mobile: +971 55 5597389
Email: imunro@bellpottinger.com  

About APICORP
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank established to foster the development of the Arab worlds oil and gas industries. The organization was created under the terms of an agreement signed by the 10 Member States of the Organization of Arab Petroleum Exporting Countries (OAPEC) in September 1974. APICORPs vision is to transform the Arab energy industry into a powerful force for the regions economic progress. Driven by this vision, APICORP seeks to make equity investments and provide project loans, trade finance, advisory and research to the energy industry.

APICORP is one of the five organizations established by OAPEC to promote cooperation and economic integration in the Arab hydrocarbon and petrochemical industry. Since its founding, APICORP has made significant contributions to the evolution of the regions energy industry. It has made equity investments in 22 oil and gas joint venture projects worth over $13 billion and participated in direct and syndicated energy finance transactions worth over US$126 billion. APICORPs aggregate commitments in these transactions, including both in equity and debt, are valued in excess of US$11 billion. Apart from this, it has provided advisory and treasury services related to financing and project development; and published highly regarded macro-economic research. These areas continue to define APICORP in todays marketplace.

APICORP is independent in its functioning and carries out its operations on a commercial basis. The Corporations headquarters are located in Dammam, in the Eastern Province of Saudi Arabia. APICORP also operates a Banking Branch in Manama, Bahrain.

For more information about APICORP visit www.apicorp-arabia.com

Press Release 2016