Oil Recovery Services in Algeria has secured a shariah-compliant financing facility worth US$10mn from Apicorp.
The debt facility will support a service contracting company working for the Algerian state-owned oil company Sonatrach. It is the first Islamic financing facility provided by Apicorp in Algeria.
Executives at Apicorp – a multilateral development bank made up of the 10 states of the Organisation of Arab Petroleum Exporting Countries – say that it will act as a template for further funding, at a time when Sonatrach is handing out hundreds of dollars’ worth of contracts in Algeria.
General manager Raed Al Rayes says: “Completing this facility for Oil Recovery Services is a timely step for Apicorp, as it helps us strengthen our position in the Algerian lending market, which is consistent with our objectives to develop the energy sector in the Arab world. The facility will also help us take advantage of other attractive business opportunities available within the Algerian market for years to come.”
Despite the downturn in the oil market, Apicorp recently reported a 2.4% increase in profits and has remained bullish on the sector throughout the downturn.