The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, will loan Algeria’s Sonatrach a $250 million for two facilities, according to Pipeline Oil and Gas.

The first loan will be for Sonatrach Petroleum Investment Corporation (SPIC), a subsidiary of Sonatrach and an Algerian state-owned national oil company, and it is around a $100 million bilateral pre-financing facility. This loan will be used to fund the maintenance of the Sonatrach Raffineria Italiana complex in Sicily, Italy, which Sonatrach acquired from ExxonMobil in December 2018.

The second loan, a $150 million unfunded and syndicated letter of credit, is for the purchase of Saudi Aramco crude oil by Sonatrach Raffineria Italiana.

“APICORP is committed to supporting and financing Sonatrach in its first overseas acquisition. This is part of our mission to continue playing an active role in the development of our member countries’ broader energy sector and contribute to [the] diversification and geographic expansion.” Said Ahmed Attiga, APICORP CEO.