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 Burullus gas field in the Mediterranean Sea.
The syndicated medium-term loan facility was arranged by Banque du Caire in partnership with Al Baraka Bank Egypt, Arab International Bank (AIB), and Société Arabe Internationale de Banque (SAIB). The dual-currency facility includes a $30 million tranche in US dollars and an Egyptian pound tranche equivalent to EGP 2.2 billion.
According to a statement from Al Baraka Bank Egypt, the bank contributed $20 million to the facility, which will cover approximately 45.5% of the total project cost, estimated at $165 million.
Banque du Caire acted as the Initial Mandated Lead Arranger, Agent, Security Agent, Account Bank, and Book Runner. Al Baraka Bank Egypt, AIB, and SAIB served as Mandated Lead Arrangers (MLAs). Baker McKenzie provided legal counsel, while Environment & Development Group acted as the environmental consultant.
Cheiron secured the West El Burullus (WEB) offshore gas field concession from the Egyptian government in January 2023. CEO Allan Linn stated that the loan will provide the necessary liquidity to advance the project, increasing domestic gas production and reducing Egypt’s reliance on gas imports.
“The project includes several phases, starting with exploration, followed by production and export. It will involve drilling new wells, constructing production platforms, and building pipelines to connect the field to processing plants,” Linn explained.
As Egypt’s third-largest oil and gas producer, Cheiron operates more than 25 concessions across the country, with a total production exceeding 130,000 barrels per day (bpd). This latest investment underscores the company’s commitment to enhancing Egypt’s energy security and expanding its role in the regional gas market.