Press Releases

Noga-Ahli United in $120m Finance Deal

October 13th, 2009

The Oil & Gas Holding Company, owned by the National Oil and Gas Authority (Noga), and Ahli United Bank (AUB) yesterday signed a $120 million agreement to finance its stake in the new $430m Lubricant Base Oil manufacturing plant in Bahrain.

The loan facility will be used to finance nogaholding’s 27.5 per cent stake in the new plant, which will be one of the largest in the Middle East.

The nogaholding landmark joint venture is being established in partnership with Bapco and Neste Oil of Finland.

The new plant, set up to increase revenue from the domestic oil industry, will utilise feedstock from Bapco’s Low Sulphur Diesel Plant to manufacture superior Grade III Group lubricant base oils.

Bahrain will have a 55pc stake in the plant with Neste Oil retaining a 45pc share.

“The Lube Base Oil Project is an important project for nogaholding and will generate substantial additional revenue for the petroleum industry in Bahrain,”

Oil and Gas Affairs Minister and Noga chairman Dr Abdulhussain Mirza said.

“The project will benefit from the increasing demand across the world for low sulphur base oils in the production of lubricants.”

“We are pleased to co-operate with AUB for financing our stake in the new Lube Base Oil Project.

“AUB’s market presence and track record in successfully financing high-profile infrastructural and industrial projects played a key role in the decision,” he said.

“AUB is pleased to be involved in a project that will have a far reaching effect on the country’s economy,” Ahli United Bank group chief executive officer and managing director Adel El Labban said.

“The Lubricant Base Oil Project will not only generate additional revenue but also create new employment opportunities.

“This financing facility is proof of the confidence industry has in our capability to finance large scale projects that are vital to the growth of the region’s economies and reflects the commitment of the AUB Group in contributing to the development of the communities in which it operates.”