Bapco in talks with banks, ECAs over $5bn Sitra oil refinery project

State-run Bahrain Petroleum Company (Bapco) has approached banks regarding financing needed to back the capacity expansion of the existing Sitra oil refinery - a project expected to cost over $5 billion. The company, advised by BNP Paribas and HSBC, has sent a so-called 'teaser' to commercial banks for a loan likely to be over $1 billion.

The rest of the project cost will be covered with equity coming from the company, expected to exceed $1 billion, and with debt facilities backed by export credit agencies - such as Italy's SACE, UK Export Fiannce, Spain's CESCE and the Export-Import Bank of Korea - of at least $3 billion.