A banking consortium led by Banque du Caire, alongside Arab International Bank, Al Baraka Bank Egypt, and saib Bank, has arranged a $75m syndicated medium-term financing for Cheiron Egypt Delta Limited, a subsidiary of the Cheiron Group specializing in oil and gas extraction. This financing will help cover part of the investment costs for the gas field development project in the West El Burullus area of the Mediterranean Sea.
This financial operation aims to provide up to 45.5% of the total $165m investment required for the project, for which the company has secured concession rights from the Egyptian government.
Hussein Abaza, Managing Director and CEO of Banque du Caire, emphasized the critical role of Egypt’s banking sector in supporting the national economy. He stated that Banque du Caire’s involvement in this financing demonstrates its commitment to bolstering the Egyptian economy, particularly since the oil and gas sector is a major industry that supports numerous intermediary sectors and activities.
Bahaa El-Shafei, Deputy CEO of Banque du Caire, highlighted the bank’s extensive expertise in joint financing, which has allowed it to participate in many significant financial transactions in recent years. He explained that Banque du Caire will serve as the finance agent, guarantee agent, and banking provider for funding accounts in this operation. El-Shafei stated that this project is expected to augment Egypt’s natural gas production, narrow the import gap, and provide a substantial boost to the country’s energy sector.
Alan Linn, CEO of Cheiron, underscored the importance of this financing in ensuring liquidity for the project, marking a significant step toward enhancing natural gas production in Egypt and developing the West El Burullus gas field. He noted that the loan will facilitate production from the field, satisfy the growing local demand for natural gas, and reduce reliance on imports. The project involves multiple phases, including exploration, drilling, production, and export, as well as the drilling of new wells, construction of production platforms, and establishment of pipelines to transport gas to processing plants.
Hazem Hegazy, CEO and Vice Chairperson of Al Baraka Bank Egypt, stated that the bank’s role as a lead arranger in this joint financing aligns with its vision of investing in projects that have a profound economic impact. He pointed out that the energy sector not only drives growth but also plays a strategic role in achieving economic stability and enhancing Egypt’s long-term competitiveness. Hegazy added that Al Baraka Bank Egypt contributed $20m as part of the joint financing to support the development of the West El Burullus gas field, a project vital for achieving energy self-sufficiency. This partnership reflects the bank’s commitment to channeling resources toward sustainable solutions that meet Egypt’s growing economic needs and foster greater integration between the banking and energy sectors.
Meanwhile, Afdal Naguib, CEO and Managing Director of saib Bank, expressed his enthusiasm for this partnership, emphasizing SAIB’s leading role in financing strategic sectors and national projects, particularly in the oil and gas industry, in support of Egypt’s Vision 2030 to become a regional energy hub. He noted that Egypt’s natural gas production is expected to reach 80 billion cubic meters by 2030, meeting rising domestic demand while continuing to fulfill export commitments to the global market.
This financing initiative to support investments in the oil and gas sector underscores the strong commitment of the participating banks to this vital industry, given its essential role in supporting the national economy and creating new job opportunities. Cheiron Group is the third-largest oil and gas producer in Egypt, with more than 25 active concessions in the country, producing over 130,000 barrels per day, in addition to owning production rights for fields outside Egypt.
