The Arab Petroleum Investments Corporation (APICORP) said it has agreed to two loans worth a combined $250 million with Sonatrach Petroleum Investment Corporation, a subsidiary of Algerian state-owned oil company Sonatrach.
The first loan, worth $100 million, will be used to back the maintenance of the Sonatrach Raffineria Italiana complex in Sicily, Italy, which Sonatrach bought from ExxonMobil in 2018.
The second loan is a $150 million letter of credit for the purchase of Saudi Aramco crude by Sonatrach Raffineria Italiana, APICORP said in a statement.
“Apicorp is committed to supporting and financing Sonatrach in its first overseas acquisition," said Ahmed Ali Attiga, chief executive of APICORP.
"This is part of our mission to continue playing an active role in the development of our member countries’ broader energy sector and contribute to diversification and geographic expansion.”
“As a trusted financial partner to the region’s energy sector, we remain steadfast in our mission to continue exploring opportunities in Algeria and other member states and providing solutions that drive innovation and bolster the sustainability of this vital industry,” Attiga added.
“Our strategic investment in international refining through Sonatrach Raffinera Italiana will contribute to meeting local energy demand and address imbalances in petroleum supplies,” said Nordine Bouteldja, managing director of Sonatrach Petroleum Investment Corporation.
Located in Augusta, Sicily, Sonatrach Raffineria Italiana is Sonatrach’s first overseas acquisition.
The integrated refinery complex, which has access to the major global shipping routes through the Mediterranean Sea, boasts a conversion rate of 200,000 bpd and can produce a wide range of downstream products, including gasoline, distillates, fuel oils, lubricants, asphalts, and chemicals.
Earlier this year, Sonatrach designated APICORP as one of a select group of financial institutions to provide consultancy on project management and financing-related matters.