en.Wedoany.com Reported - The African Export-Import Bank (Afreximbank) has approved a $200 million financing arrangement to support Shoreline Power Company Limited and Arkad SpA in participating in the Hassi Bir Rekaiz (HBR) Phase 2a oil field development project in Algeria. This project is one of Algeria's largest upstream infrastructure projects.

The financing will support Arkad's 44% share in the $980 million engineering, procurement, and construction (EPC) contract. The contract was awarded by Groupement Hassi Bir Rekaiz (GHBR), a joint venture comprising Sonatrach, PTTEP, and CEPSA. Approved in June, the financing arrangement includes a $110 million contract financing portion to support the project's performance bonds and working capital, as well as a $90 million revolving loan to fund future pipeline and energy infrastructure projects undertaken by Shoreline and its affiliates.

The HBR Phase 2a project includes the construction of a new central processing facility, expected to increase production at the Hassi Bir Rekaiz oil field from approximately 13,000 barrels per day to between 50,000 and 60,000 barrels per day, thereby enhancing Algeria's oil and gas production capacity.

According to Afreximbank, the financing also supports its broader strategy to expand the role of African engineering and construction companies in large-scale energy projects. The transaction is being executed under the bank's EPC initiative, marking the first time Afreximbank has provided financing for a sub-Saharan African contractor implementing a major infrastructure project in North Africa.

Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, stated that this transaction demonstrates the practical operation of the bank's EPC initiative and the Intra-African Trade Champion Framework. By providing $200 million in structured financing, the bank supports the development of Algeria's energy infrastructure while also promoting intra-African trade in the engineering and construction services sector.

Afreximbank noted that the project is expected to create approximately 6,000 jobs, strengthen regional supply chains, and further support cooperation among African energy companies as development activities on the continent continue.