Press Release

Media Contacts

For further information contact:

Timothy Harwood

(202) 336-8744

Thursday, July 13, 2006

OPIC Board Approves $200 Million in Insurance for Energy Development in Egypt

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 is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.