Press Release
Thursday, July 13, 2006

WASHINGTON, D.C. - The Board of Directors of the Overseas Private Investment Corporation (OPIC) today approved the provision of $200 million in OPIC political risk insurance for a project that will further develop 18 oil and gas concessions in Egypt over the next five years, significantly expanding the country's energy infrastructure.

Houston-based Apache Corporation, the largest U.S. investor in Egypt, will use the OPIC insurance to support $1.8 billion of new investment during 2006-2010, specifically for the exploration, development and production of oil and gas concessions in Egypt's Western Desert region. Among the concessions is the Qasr field: with more than two trillion cubic feet of gas and 50 million barrels of estimated recoverable reserves, it is the largest field ever found by Apache. The majority of the oil and gas produced by the concessions will be used for domestic consumption.

In addition to generating hundreds of permanent local jobs and substantial tax revenues for the Egyptian government, the project supports the construction of 200 schools for Egyptian girls in rural communities by an Apache-sponsored nonprofit organization, Springboard - Educating the Future.

OPIC President and CEO Robert Mosbacher, Jr. noted that OPIC's participation helped to catalyze both increased investment by Apache in Egypt and the contribution of other, private sector insurers in the project.

"OPIC is pleased to provide meaningful support for a project that will significantly develop Egypt's energy resources and thereby provide many benefits to the country," Mosbacher said. "Secondary social benefits such as the construction of schools for Egyptian girls, in addition to the creation of hundreds of jobs, make this project even more rewarding."

The project is OPIC's second with Apache in the past two years. In April 2004, OPIC's board approved $300 million in insurance to support Apache's effort to help Egypt shift the emphasis of its energy production from oil to more environmentally-friendly natural gas.

OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency's 35-year history, OPIC has supported $164 billion worth of investments that have helped developing countries to generate more than 732,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also generated $69 billion in U.S. exports and supported more than 264,000 American jobs.