EIB, African Development Bank and others, and Qatar Petroleum International - financing of Mostorod Oil Refinery Project15 Jun 2012
The financing of the Egyptian Refinery Company's Mostorod Oil Refinery Project, which closed yesterday, is the largest ever project financing in Africa, comprising US$2.6 billion in debt and a further US$1.1 billion in equity.
Slaughter and May advised Qatar Petroleum International in relation to its equity participation and advised the European Investment Bank, African Development Bank and a syndicate of banks on the debt package.
The Mostorod Oil Refinery is to be developed by Egyptian Refinery Company ('ERC'), a partnership between Citadel Capital and its co-investors, Qatar Petroleum International and EGPC. ERC's production of liquid products will be sold to EGPC under a 25-year offtake, facilitating a reduction in Egypt's diesel imports by approximately 50%.
The refinery will comply with World Bank and European Union environmental standards and will ameliorate the environmental impact of the existing CORC refinery by preventing approximately 93,000 tons of sulphur from being released into the atmosphere of Greater Cairo. An estimated 10,000 workers are to be employed during the construction phase and 700 permanent jobs will be created when the refinery is operational.
Slaughter and May acted alongside Helmy Hamza & Partners in relation to Egyptian law matters.
Advising EIB, African Development Bank and others: Financing and Infrastructure, Energy and Natural Resources: Helen Griffiths (partner), James Wyatt (associate), Afi Narh-Saam (associate); Real Estate and Infrastructure, Energy and Natural Resources: Steven Edwards (partner), Richard Todd (associate)
Advising Qatar Petroleum International: Financing and Infrastructure, Energy and Natural Resources: Steven Galbraith (partner), Jamie Macpherson (associate), Rumaana Habeeb (associate)
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