meed-logo

line1 line2 line3
SIGN IN / REGISTER

US closes deal to finance oil project in Bahrain

13 August 2024

Register for MEED's 14-day trial access 

Bahrain’s state-owned Bapco Energies has closed a deal to secure a $500m loan guarantee from the US Export-Import Bank (US Exim Bank) to develop the Bahrain Oil Field, which is also known as the Awali Field.

The financing will be used to fund the Bahrain Field expansion and development programme in the southern part of the country, Bapco said in a statement.

The medium-term development programme comprises several oil and gas projects that aim to maximise onshore oil and gas production as well as recovery, according to the company’s website.

The programme includes the drilling and commissioning of new gas wells and appraisal of the newly discovered resources.

In March, Exim Bank said the programme would include over 400 new oil wells and 30 gas wells.

Bapco Energies Group CEO Mark Thomas said his company was happy to partner with US Exim on the transaction.

He said: "This strategic partnership underscores our ability to source financing from world-class organisations like US Exim.

"As we are leading the energy transition in the Kingdom of Bahrain under the guidance of our Chairman His Highness Shaikh Nasser Bin Hamad Al-Khalifa, His Majesty the King’s Representative for Humanitarian Works and Youth Affairs, Bapco Energies will continue to invest in enhancing the national energy infrastructure to meet future energy demands."

The US-based bank JP Morgan Chase acted as the mandated lead arranger and disbursement agent on the transaction, which was funded through the Private Export Funding Corporation (Pefco).

Pefco was created in 1970 to assist in the financing of US exports by supplementing the financing available from commercial banks and other lenders.

A rigorous feasibility study was conducted in line with US Exim’s environmental and social procedures before the funding was approved, the statement said.

The board of the US export credit agency voted to approve the $500m loan guarantee for the oil and gas drilling project in March.

At the time, it was viewed as a test of a US climate pledge to stop backing projects that expand the use of fossil fuels.

The board of directors at Exim Bank approved the project after voting in February to notify Congress about potentially supporting the expansion of the oil and gas field in Bahrain.

Democratic lawmakers opposed to the loan and environmental activists said that Exim's loan to Bapco Energies was out of step with the Biden administration's pledge to stop public financing of fossil fuel projects overseas.

The credit agency has said that the project includes measures intended to reduce greenhouse gas emissions.

Bapco signed on to the Cop28 Oil and Gas Decarbonisation Charter, which commits it to achieve net-zero operations by 2050 and end routine flaring by 2030.

In March, Exim president and chair Reta Jo Lewis said: “This transaction will support thousands of US jobs and play a crucial role in ensuring Bapco Energies is able to achieve its climate goals of enhanced grid interconnectivity, more efficiency, decarbonisation and investments in large-scale solar projects.”

Ahead of the vote to approve the loan guarantee, Democratic lawmakers pushed for its rejection in a letter to Exim’s board members.

The lawmakers, led by US Senator Jeff Merkley, said: “We urge you to take Exim's mandate to consider the environmental impacts of projects seriously, and to start by disapproving new funding for oil and gas drilling in Bahrain.”

The US was one of more than 30 countries that joined a pledge to end public financing of fossil fuel projects overseas at the Cop26 climate conference in Glasgow in 2021.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12330832/main5804.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • French contractor begins work on Morocco’s Noor Atlas project

    24 March 2026

     

    France-headquartered Eiffage is carrying out construction works on phase one of Morocco’s 305MW Noor Atlas solar photovoltaic (PV) programme, according to sources close to the project.

    Morocco’s National Office of Electricity & Drinking Water (Onee) and the Moroccan Agency for Sustainable Energy (Masen) recently signed power purchase agreements (PPAs) for the programme covering the development, financing, construction, and operation of six solar PV power plants.

    The plants were tendered in two lots in 2022, covering the eastern and southern parts of the country.

    The first lot comprises the following four projects:

    • Ain Beni Mathar: 121MW
    • Enjil: 42MW
    • Boudnib: 33MW
    • Buonane: 29MW

    The second lot comprises two solar PV projects in Tan-Tan and Tata, with each having a planned capacity of 40MW.

    Eiffage, through its subsidiary Clemessy Maroc, previously carried out electrical works on Morocco’s Noor Tafilalt solar programme.

    However, it is understood that the contract for lot one is the company’s first role as full engineering, procurement and construction contractor for a solar project in the region.

    Local media reports previously said plants under the programme will be developed by consortiums comprising Moroccan and European companies.

    Contractor details for phase two of the project have not been disclosed. However, it is understood that construction work has begun, with the project scheduled to begin delivering electricity by July 2027.

    In 2025, Masen established a dedicated subsidiary (Noor Atlas Energy Company) to oversee the project’s implementation.

    Germany’s development bank KfW and the European Investment Bank (EIB) are providing concessional financing, while Bank of Africa is providing commercial financing (local) for the project.

    US/India-based Synergy Consulting is acting as consultant on the project.

    In May 2025, Onee obtained EIB financing of €170m and KfW financing of €130m to expand the national grid by 731  kilometres and increase its evacuation capacity by 1,850 MVA.

    EIB previously announced in 2018 that it is providing concessional financing of €129m under the ELM guarantee for Noor Atlas, against a total project cost of €272m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16100781/main.jpg
    Mark Dowdall
  • Oman issues more Sultan Haitham City construction tenders

    24 March 2026

    Oman’s Ministry of Housing & Urban Planning (MHUP) has released new construction packages covering road and public realm infrastructure for the first phase of the Sultan Haitham City project, located to the west of Muscat.

    The latest package to be tendered is the construction of transport network connectivity and utilities from Sultan Qaboos Road.

    The tender was floated on 13 March. The deadline for bid submission is 28 April.

    The scope covers the road connections linking Sultan Haitham City to Sultan Qaboos Road, as well as the associated civil and utilities scope.

    This includes bridges and grade-separated structures, utility buildings, stormwater and drainage assets, and medium- and low-voltage electrical installations. 

    Separately, MHUP has also tendered the delivery of a major green space within the development. The tender for the construction of a park and associated utilities was floated on 21 January, with a bid submission deadline of 3 May.

    The scope covers construction of the primary park spanning around 45 hectares, including related structures, landscaping and wet and dry utilities, as well as tie-ins to the project’s main services networks.

    The other package, also issued in January, covers landscaping works to the public realm of primary roads surrounding Neighbourhood 10. The bid submission deadline is 6 April.

    Earlier this month, Oman signed 17 international investment and development agreements worth over RO762m ($1.98bn) at the Mipim 2026 event held in Cannes, France.

    The deals were concluded through MHUP and partners at the Oman pavilion, and span mixed-use real estate, healthcare, agri-investment and digital planning tools.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16099787/main.jpg
    Yasir Iqbal
  • Sultan Al-Jaber calls Strait of Hormuz blockade “economic terrorism”

    24 March 2026

    Register for MEED’s 14-day trial access 

    The weaponisation of the Strait of Hormuz by Iran is an act of “economic terrorism”, with its global impact far beyond energy markets, Sultan Ahmed Al-Jaber, the UAE’s Minister of Industry and Advanced Technology, and managing director and group CEO of Abu Dhabi National Oil Company (Adnoc), has said at an energy industry conference in the US.

    Speaking at CERAWeek, taking place in Houston, Texas, Al-Jaber said that when the Strait of Hormuz is threatened, the human cost is exponential, and the consequences reach factories, farms and families around the world.

    Al-Jaber, who is also chairman of Abu Dhabi Future Energy Company (Masdar), said “energy security is not just a slogan, it’s the difference between lights on and lights off”. He stressed that the world’s critical arteries must remain open and the Strait of Hormuz is one of those arteries.

    “Twenty-one miles wide. Twenty million barrels a day. Nearly a fifth of the world’s oil and gas. Over a third of the world’s fertiliser. Almost a quarter of the world’s petrochemicals and significant amounts of industrial metals. In short, much of the oxygen of the global economy runs through a single throat. Yet, Iran believes that choking it is an acceptable strategy.

    “When Hormuz is squeezed, the pressure is immediately felt around the world. In just three weeks, the price of oil has risen by 50%. This is raising the cost of living for those who can least afford it and slowing economic growth everywhere. From factories, to farms, to families around the world, the human cost is mounting by the day,” Al-Jaber, who also serves as the executive chairman of Adnoc’s overseas investment vehicle XRG, remarked.

    “So let me be absolutely clear. Weaponising the Strait of Hormuz is not an act of aggression against one nation. It is economic terrorism against every nation. And no country should be allowed to hold Hormuz hostage, not now, not ever. And while we appreciate all efforts to stabilise markets and reduce prices, this is not a supply issue. It is a security issue, and it has only one durable answer: keeping the Strait open. We cannot trade our way out of this crisis,” he stressed.

    Al-Jaber stressed the UAE did not ask for conflict and had taken every possible step to prevent it. “But when the moment came, we were ready. Our defences have been tested. Our resilience has been tested. Our character has been tested. And we withstood.

    ALSO READ: Adnoc Gas says operations continuing despite security incidents

    “At Adnoc, we took hits no civilian enterprise, let alone one focused on delivering energy to the world, should ever have to take. We are deploying extraordinary measures to keep our people safe and to make sure, as much as possible, every customer and every stakeholder gets what they need,” he said.

    “We will continue to defend our nation and our way of life. In fact, this experience has only reinforced our model of pragmatic progress, rooted in realism not ideology, steady in its course, practical in its approach and relentlessly focused on results.”

    Al-Jaber said the UAE and Adnoc’s resilience was not a reaction, but the result of years of investment in infrastructure, preparation and long-term planning and strategic partnerships. “For the UAE, partnership is not just something we do. It is who we are. Our commitments are concrete. Our word is our currency. And when it really matters, we step up and show up.

    “That is why our relationship with all our partners, including the United States, endure. Through Adnoc, XRG and Masdar we have already invested more than $85bn in US energy assets, supporting power generation, advanced chemicals and jobs across 19 states,” Al-Jaber said, adding the US offers a unique combination of resource depth and investment stability.

    “We are actively exploring opportunities across the whole value chain. And we are keen to expand our investments in hard infrastructure from storage to liquefaction to regasification plants.”

    Turning to the future, Al-Jaber said the crisis has revealed two very different visions. One seeks to spread instability. One seeks to promote prosperity. The UAE, he added, made its choice long ago.

    “We built Adnoc into one of the most reliable energy companies on Earth not because disruption never reaches our borders, but because when it does, we stay the course. That’s why we have diversified how we produce energy. We have expanded the routes that connect supply to markets.

    “We have integrated all sources of energy at scale. We have embedded technology and AI across our operations as the force multiplier that will define the next era of energy. And we have built a global network of partners who believe that energy security is a shared responsibility.”

    Photo: File image

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16098176/main5554.jpg
    Indrajit Sen
  • Kuwait contractor wins Shagaya power grid deal

    24 March 2026

    Kuwait-based contractor Power Grid Company has won a KD48.6m ($158.7m) contract to build a 400kV overhead transmission line linking the Shagaya solar energy generation station with Wafra in southern Kuwait.

    The contract was awarded by Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE).

    Power Grid was one of three firms that submitted bids last year, according to regional projects tracker MEED Projects.

    The other bidders included India’s Larsen & Toubro, with an offer of $135m, and Kuwait’s National Contracting Company, with a bid of $140m.

    The transmission line will connect Shagaya to the Wafra (Z) transformer station. The project forms part of the wider Shagaya masterplan, which is being developed as a key component of Kuwait’s renewable energy strategy, including the Shagaya renewable energy complex.

    The Kuwait Authority for Partnership Projects (Kapp) is currently procuring a 500MW solar photovoltaic (PV) independent power project (IPP) in partnership with MEWRE.

    As MEED exclusively reported, the deadline to bid for a contract to develop the plant was recently pushed back to the end of April.

    The plant is being developed under zone two of the third phase of the Al-Dibdibah power and Al-Shagaya renewable energy project.

    In January, three consortiums submitted bids for a contract to develop Kuwait’s first utility-scale solar PV plant.

    The Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one IPP will have a total power generating capacity of 1,100MW.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097432/main.jpg
    Mark Dowdall
  • Prequalification begins for Cairo Metro Line 2 upgrade

    24 March 2026

     

    Egypt’s National Authority for Tunnels (NAT) has issued a request for prequalification (RFQ) notice inviting firms to prequalify for a contract to rehabilitate and upgrade the Cairo Metro’s Line 2 network.

    The notice was issued in mid-March. The prequalification submission deadline is 30 April.

    According to the official notice, the scope of the works includes the design, execution, supply, installation, testing and commissioning of major system upgrades across the Cairo Metro Line 2 infrastructure and stations, along with integration into existing operational systems.

    The project aims to refurbish and modernise the metro line systems and enhance onboard communications across the current rolling stock fleet, to extend the metro system’s operational lifespan by at least 25 years.

    The contract duration is five years.

    The project is receiving a financing grant of €250m ($263m) from the European Bank for Reconstruction and Development (EBRD), €240m ($252m) from the European Investment Bank (EIB) and €60m ($63m) from the Egyptian government.

    Cairo Metro Line 2 has been operational since 1996. The line runs from Shubra El-Kheima to El-Mounib, spanning about 21.5 kilometres (km) with 20 stations.

    The route includes 12 underground stations, six at-grade stations and two elevated stations.

    The track infrastructure is built around two primary track configurations.

    The line carries about 1.8 million passengers a day.

    The project is part of NAT’s key planned railway projects in the country. According to NAT’s official website, eight key projects, including metro lines, high-speed rail and light rail transit, are currently in the pipeline.

    According to GlobalData, the Egyptian construction industry is expected to grow by 6.4% in 2026, supported by rising foreign direct investment in the country, coupled with the government’s investment in energy and industrial construction projects.

    The industry’s expansion in the forecasted period will be supported by investments outlined in Egypt’s financial year 2025-26 budget, approved in June 2025. The budget includes a total government spending of E£4.6tn ($91.3bn).

    The infrastructure construction sector is expected to expand by 6.9% from 2026 to 2029, supported by investments in road, rail and port infrastructure projects.

    According to MEED Projects, Egypt has been the most active market for the rail sector in the Mena region, with contracts worth over $34bn awarded in the past decade.

    MEED’s March 2026 report on Egypt includes:

    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16097414/main.jpg
    Yasir Iqbal