Mauritius Commercial Bank Limited (MCB) Acts as Mandated Lead Arranger in Apex’s Egyptian Natural Gas Investment – African Business

Zaahir Sulliman (MCB): “This landmark transaction demonstrates the ability of MCB (www.MCB.mu) to develop and offer adapted solutions through a wide range of products and services to suit the needs of its clients”

Apex International Energy (Apex), a privately owned independent oil and gas exploration, production and production company, announced on 10 January 2023 that it had acquired four concessions in Egypt’s Western Desert oil-producing region from IEOC Production B.V. IEOC. These concessions were owned by Eni S.p.A. Apex will then acquire two additional concessions after parliamentary approval of extensions. This is expected to happen in the first quarter 2023. Apex will now have interests in eight concessions in the Western Desert. Six of these concessions will be managed by Apex.

The acquisition is being financed in part through a senior secured borrowing base facility with The Mauritius Commercial Bank Limited (‘MCB’) acting as Mandated Lead Arranger, Modelling Bank and Hedging Bank. MCB used the Equator Principles in order to prevent and mitigate social and environmental risk before financing this project.

The Head of Specialized Finance, Mr. Zaahir Sulliman, explained : “This landmark transaction further demonstrates the ability of MCB to develop and offer adapted solutions through a wide range of products and services to suit the needs of its clients. We are delighted to support Apex’s strategy and continue its ongoing rapid growth in the Egyptian energy landscape and to become part of the exciting Egyptian natural gas success story in line with MCB’s gradual energy transition strategy.”

The existing production of approximately 7k barrels per hour from the South East Meleiha(SEM) concession (100% owned working interest) will be increased by this transaction to increase Apex production to 11,500 barrels/day to become Egypt’s eighth largest oil producer. Apex plans to start its first natural-gas production in the second quarter of 2023.

Apex is managed by a team of experienced managers who have built upstream oil and natural gas businesses of scale in Egypt. Apex has been recognized by Egyptian authorities as a leading independent explorer/producer in the Western Desert. They are looking to consolidate their acreage position and take advantage of organic and inorganic growth opportunities.  Blue Water Energy LLP affiliates (BWE) and Apex management are equity investors. All of them have extensive sector expertise in energy and extensive experience in the MENA area. They also have a strong focus on ESG.

Egypt is still one of the most important oil and gas provinces in North Africa and the Middle East. The government continues to support the upstream industry.

Distributed by APO Group for The Mauritius Commercial Bank Ltd. (MCB).