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Freshfields advises the Egyptian Refining Company on the settlement of a deal that will fund the continued construction of Egypt’s largest oil refinery

Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised the Egyptian Refining Company (Takrir) S.A.E. (‘ERC’), the company behind the development of Egypt’s largest oil refinery, on the settlement of a deal with the construction joint-venture working on the refinery that will fund a series of delays to the project and allow construction to move forwards. The construction joint-venture comprises of GS Engineering & Construction Corporation and Mitsui & Co., Ltd.

Freshfields has also advised the ERC on the project finance restructuring associated with the settlement. The refinery had a pre-restructuring construction cost of $ 4.0 bn and the restructuring involves additional new loans and equity commitments that are valued at around $500m.

The refinery, which is set to produce annually 2.25 million tons of diesel and 600 thousand tons of jet fuel in addition to LPG and other products, is a priority project for Egypt. The production from the plant will cover 30 - 35 per cent of Egypt’s diesel deficit.

The key shareholders of the ERC are the Egyptian General Petroleum Corporation (‘EGPC’), Qalaa Holdings S.A.E., a leading investment company in Africa and the Middle East and Qatar Petroleum International, the national oil and gas company of the State of Qatar.

The Freshfields team was led by partner, Tim Pick, who has been involved in the project since its inception twelve years ago, and who was supported by Senior Associate Ronen Lazarovitch and associate Michelle Tse.

ENDS

Notes for Editors

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