Cheiron Egypt Delta Ltd, a subsidiary of Egypt-based exploration and production company Cheiron, has secured a $75 million loan from four Egyptian banks to support the development of the offshore West El Brullus gas field in the Mediterranean.
The syndicated medium-term loan was arranged by Banque du Caire, with participation from Al Baraka Bank Egypt, Arab International Bank (AIB), and Société Arabe Internationale de Banque (SAIB). The financing includes a $30 million U.S. dollar tranche and an Egyptian pound tranche amounting to EGP 2.2 billion.
According to a statement from Al Baraka Bank Egypt, its contribution to the loan was $20 million. The funding will cover approximately 45.5% of the project’s total estimated cost of $165 million. Banque du Caire acted as the Initial Mandated Lead Arranger, Agent, Security Agent, Account Bank, and Book Runner, while Al Baraka Bank Egypt, AIB, and SAIB served as Mandated Lead Arrangers (MLAs). Legal counsel was provided by Baker McKenzie, with Environment & Development Group serving as the environmental consultant.
Cheiron was awarded the concession for the West El Brullus gas field by the Egyptian government in January 2023. CEO Allan Linn emphasized that the loan would provide essential liquidity for the company to advance the project, enhance Egypt’s gas production, and help meet growing domestic demand while reducing reliance on imports.
The project will unfold in multiple phases, beginning with exploration, followed by production and potential exports. It includes drilling new wells, constructing production platforms, and developing pipelines to connect the field to processing facilities.
As Egypt’s third-largest oil and gas producer, Cheiron operates more than 25 concessions within the country, with a total production exceeding 130,000 barrels per day (bpd).