Gibson Dunn represents Djibouti in billion dollar Pipeline Project

Gibson Dunn represented the Government of the Republic of Djibouti in its negotiations and finalisation of a Framework Agreement with BRM HOAP Holdings for the Horn of Africa Pipeline Project. The USD1.55 billion project involves the development of an import facility, buffer storage facilities, and a 550 km cross-border pipeline, originating in Djibouti, which will be used to transport and deliver refined petroleum products to Ethiopia.

The Framework Agreement was signed in New York on September 29, 2015, by His Excellency Ali Yacoub Mahamoud, minister of energy in charge of Natural Resources, on behalf of the Government, and Brian Herlihy, chief executive officer of BRM. BRM also signed a similar Framework Agreement with the Government of the Federal Democratic Republic of Ethiopia. The signing ceremony was attended by His Excellency Ismaïl Omar Guelleh, the president of Djibouti, His Excellency Hailemariam Desalegn, the prime minister of Ethiopia, and senior government officials from Djibouti and Ethiopia.

BRM is a joint venture between Mining, Oil & Gas Services, a unit of Johannesburg-based Royal Bafokeng Holdings, and Black Rhino Group Limited, a portfolio company of the Blackstone Group focused on the development and acquisition of energy and infrastructure projects across Africa. BRM will seek to raise at least $1 billion of senior debt financing. The project is expected to achieve financial close in 2016 and construction is scheduled for completion two years later.

The Gibson Dunn team comprised Mitri Najjar and Elaine Chao.