• Total contract financing is SR 202.65m in the form of funded and unfunded facilities.
  • Loan facility to support Arkad’s construction of Saudi Arabia’s Master Gas System.
  • Announcement comes after successful year for Arkad, including the acquisition of ABB’s EPC oil and gas business. 

Al Khobar, Saudi Arabia: Arkad, the leading Saudi engineering and construction company, today announced that it has signed a facility agreement with Arab Petroleum Investments Corporation (APICORP), the multilateral development bank and leading lender to the Arab energy industry.

The facility is worth up to SR 202.65m and is intended to support Arkad’s construction of the Master Gas System (Package 2), a project in Saudi Arabia. The facility will mature in the first half of 2019.

The MGS national project is intended to support the development of Saudi Arabia’s non-associated gas, unconventional gas and related condensate reserves.

Once completed, the project will raise the system’s capacity to 12.5 billion cubic feet of gas per day (CFD) from 8.4 billion CFD currently. It will help deliver gas to the western region, including the King Abdullah Economic City, Rabigh Refining & Petrochemical Company (PetroRabigh) and certain other power plants.

Package 2 for the Central Region entails the installation of 226 km of 46-inch (1,168-mm) pipeline on the East-West Qassim Gas pipeline 1 with total value of SR 826,45m. The contract is expected to be complete by December 2018.

Hani Abdulhadi, Board Member of Arkad, commented: “Today we are delighted to announce that we have entered in to this partnership with APICORP. The contract signed today is unique as it is the first APICORP loan provided directly to finance a contract, which is a positive sign for Arkad but also the wider industry. Arkad has had an excellent year, winning new contracts and continuing to expand internationally through our acquisition of the EPC business of ABB. This loan agreement is another positive step for the business, and allows us to compete on the very best projects throughout Saudi Arabia.”

Dr. Ahmed Ali Attiga, Chief Executive of APICORP, commented: “The loan facility agreement signed with Arkad affirms APICORP’s confidence in Arkad. Supporting investment such as this in the development of Saudi Arabia’s energy infrastructure is exactly in line with APICORP’s mandate: not only does it support the Kingdom’s long-term objectives with regard to a more diversified energy mix, it also contributes to job creation and better living standards for the Saudi population.”

-Ends-

Arkad is a fully integrated EPC contractor offering innovative solutions for the energy sector across the Kingdom of Saudi Arabia (KSA). Headquartered in Al Khobar, KSA, Arkad has grown significantly over the last decade, with around 9,000 full-time staff and a substantial asset portfolio supporting world-class competencies in EPC in KSA and within the region. Built on technical expertise and an entrepreneurial spirit, Arkad is also committed to developing and investing in local skills and talent as part of its drive to build world-class energy capabilities.

For further information on Arkad E&C, please visit www.arkad.com. 

APICORP was created by the Organisation of Arab Petroleum Exporting Countries (OAPEC) in 1975 as a commercially-focused financial institution that can help provide nuanced and efficient financing options to the Arab energy industry. Over the last four decades, APICORP has worked to raise capital access and enhance the financial stability and performance of the Arab energy industry through an array of strategic equity investments, project loans, trade finance, advisory and research.

For further information on APICORP, please visit www.apicorp-arabia.com 

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© Press Release 2018

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