ANNOUNCEMENT 27 Jun 2019
In June 2019, the UK Export Finance agency (UKEF) announced providing a Buyer Credit and Direct lending financing facility to support UK exports and participation in oil refinery project in Bahrain.
NUMBER OF INTERVENTIONS
UKEF Notice of 27 June 2019, Category A project supported: BAPCO Oil Refinery Modernisation Programme: https://www.gov.uk/government/publications/category-a-project-supported-bapco-modernisation-programme/category-a-project-supported-bapco-oil-refinery-modernisation-programme
UK Export Finance agency, How to access export credit insurance, a guide to UK export finance's export insurance policy, Version 1.0, May 2015: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/562051/UKEF_Broker_toolkit_Oct_2016.pdf
UK Export Finance agency, Guidance, Export Working Capital Scheme, Published 24 April 2013, Last updated 16 October 2017: https://www.gov.uk/guidance/export-working-capital-scheme-overview-and-how-to-apply
On 27 June 2019, the UK Export Finance agency (UKEF) announced providing a Buyer Credit and Direct lending financing facility to support the joint venture company TTSJV's participation in an oil refinery project in Bahrain. The financing has a total value of USD 500 million comprising of a USD 400 million Buyer Credit and a USD 100 million Direct lending facility.
More specifically, TTSJV, consisting of the British company Technip FMC in a joint venture with Samsung Engineering and Tecnicas Reunidas, was awarded the construction work contract for the project. Additionally, under the UKEF financing agreement, the companies Worley Parsons and TTSJV will procure UK goods for the project.
Bahrain Petroleum Company (BAPCO) is the developer of the oil refinery project in Bahrain and is the borrower.
The GTA includes state loans and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
To be eligible for support from UKEF, the export contract value must have a minimum UK content of 20%. Foreign content imported and utilised as parts or components of the manufacturing process is considered as UK content.