(WO) — African Export-Import Bank (Afreximbank) has approved a $200 million financing facility to support Shoreline Power Company Limited and Arkad SpA’s participation in the Hassi Bir Rekaiz (HBR) Phase 2a field development project in Algeria, one of the country’s largest upstream infrastructure developments.
The financing will support Arkad’s 44% share of the $980 million engineering, procurement and construction (EPC) contract awarded by Groupement Hassi Bir Rekaiz (GHBR), a joint venture comprising Sonatrach, PTTEP and CEPSA. Approved in June, the facility includes a $110 million contract finance tranche to support performance guarantees and working capital for the project, along with a $90 million revolving facility to finance future pipeline and energy infrastructure projects undertaken by Shoreline and its affiliates.
The HBR Phase 2a project includes construction of a new central processing facility that is expected to increase production at the Hassi Bir Rekaiz field from approximately 13,000 bopd to between 50,000 and 60,000 bopd, strengthening Algeria’s oil and gas production capacity.
According to Afreximbank, the financing also supports its broader strategy of expanding the role of African engineering and construction firms in large-scale energy projects. The transaction is being executed under the bank’s EPC Initiative and marks the first time Afreximbank has financed a Sub-Saharan African contractor executing a major infrastructure project in North Africa.
“This transaction exemplifies our EPC Initiative and our Intra-African Trade Champions framework in action,” said Kanayo Awani, Executive Vice President for Intra-African Trade Finance and Export Development at Afreximbank. “By providing the $200 million in structured financing, we are supporting Algeria’s energy infrastructure development while advancing intra-African trade in engineering and construction services.”
Afreximbank said the project is expected to generate approximately 6,000 jobs, strengthen regional supply chains and further support collaboration among African energy companies as development activity continues across the continent.
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