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Apicorp eyes Bahrain’s $8b refinery project

Thursday, May 31, 2012

24x7 News

Arab Petroleum Investments Corporation ( Apicorp ) said it was working with the Bahrain’s Ministry of Energy and National Oil and Gas Authority (NOGA) to tap into $8 billion refinery expansion project, a top official at the bank revealed.

Ahmad Bin Hamad Al Nuaimi, General Manager and CEO of Apicorp , a Saudi-based multilateral bank owned by the 10-Arab states, on the sidelines of a symposium in Bahrain told 24X7 News that talks were on with concerned authorities for possible participation of Apicorp in Bahrain’s refinery project.

The Symposium titled ‘MENA Energy Investment in a Global Setting’ held at Ritz Carlton Hotel and Spa on Wednesday was addressed by Roberto Sieber, Chief Economist, HESS Energy Trading Company who made a presentation on Oil Market Outlook: Black Swans Turning White. The other speakers include Bill Farren-Price, CEO Petroleum Policy Intelligence and Ali Aissaoui, Senior Policy Consultant, Apicorp .

“We are finalising the modalities of Apicorp’s participation in Bahrain’s $8billion refinery project including the option of providing debt financing,” Al Nuaimi, added. In his opening remarks Al Nuaimi said Apicorp joined hands with Chevron in 1978 to establish one of the most successful projects in Bahrain known as Bahrain National Gas (Banagas). “Banagas is one of the most successful projects carried out by Apicorp in Bahrain and we will continue to seek more participation in Bahrain’s oil and gas sectors,” he added.

“Since its founding in 1975, Apicorp has pivotal role in fostering the development of the Arab oil and gas industry. Apicorp has invested in 17 joint ventures in the oil and gas industry. It has also participated in direct and syndicated energy transactions worth an estimated $130 billion. Apicorp‘s aggregate commitments in these transactions, both equity and debt, are valued in excess of $12 billion,” Al Nuaimi, said while highlighting the salient features of Apicorp’s business model. “While we look back with pride at our achievements, we also look forward to building on our track record to catalyse more value creation in the industry,” he said.

Highlighting the vision of Apicorp Al Nuaimi said the bank would continue to make greater contributions to the Arab economies by serving and promoting prosperity and empowering greater enterprise and progress. He said that most of the expansion work at Saudi Aramco were envisioned and carried by Apicorp setting a new benchmark of excellence. Talking about the bank’s performance he said around $1 billion of debt financing was offered by the bank across the MENA.

As part of a new agreement with JP Morgan, from June, Apicorp will offer a complete range of trade finance products and services to its clients, including letters of credit, collections and guarantees. He told the participants of the symposium that by offering trade finance services Apicorp enters into a new era diversification of its business streams and help the bank to benefit from the Arab world’s energy sector,” he added. The multilateral development bank, founded in 1975 by the ten members of the Organisation of Arab Petroleum Exporting Countries (OAPEC), also announced total assets of $4.6 billion for 2011, a rise of 7% from its corresponding 2010 figure. Apicorp is owned by the member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). The government of Saudi Arabia owns a 17% stake in Apicorp .

By Mahmood Rafique - www.twentyfoursevennews.com

24x7 News 2012. All rights reserved.

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