Ex-Im Bank financing to support Mexican oil and gas projects

The Export-Import Bank of the United States (Ex-Im Bank) has approved three long-term loan guarantees totalling $ 1 bn to support US exports of equipment and services to Petroleos Mexicanos (Pemex) to carry out oil and gas field exploration, development and production.
"Ex-Im Bank support of these three large projects creates and sustains thousands of US jobs at companies large and small across the country, while helping to develop vital petroleum resources to meet US, Mexican and other countries' annual energy needs," said Ex-Im Bank Chairman and President (Acting) James H. Lambright.

Each of the three transactions will involve from 200 to almost 300 US exporters or suppliers.
The transactions are:

-- PEG:
A $ 300 mm long-term loan guarantee will support US exports for Mexico's Strategic Gas Program (PEG) to help meet increasing demand for natural gas in Mexico. The transaction involves 230 US exporters and suppliers, many of them in Texas and Louisiana. Lead exporters include Pride Offshore Drilling, Houma, Louisiana; Projects & Industrial Products, San Francisco, California; Mexico Drilling, Houma, Louisiana; Diamond Services, Amelia, Louisiana; Offshore Drilling, Houston, Texas; Noble Campeche, Sugar Land, Texas; Noble Mexico, Houston, Texas; and Berry Contracting, Corpus Christi, Texas.
The 15-year program for gas exploration and production is made up of 18 separate program areas both on- and off-shore. Ex-Im Bank guaranteed two prior financings for PEG in 2002 and 2004. The guaranteed lenders on the transaction are Standard Chartered Bank and Banco Santander Central Hispano, both of New York, NY.

-- Cantarell oil field:
A $ 300 mm long-term loan guarantee will support US exports for the Cantarell oil field, Mexico's largest field under development. The transaction involves 261 US exporters and suppliers. Lead exporters include Pride Offshore Drilling, Houma, Louisiana; Noble Drilling Services, Houston, Texas; Nabors International, Houston, Texas; Diamond Offshore Drilling, Houston, Texas; Global Industries Offshore, Carlyss, Louisiana; Mexico Drilling, Houma, Louisiana; and K-Mesco, Houston, Texas.
The multi-year Cantarell development is comprised of many smaller projects with oil field development companies from around the world. Ex-Im Bank already has authorized four transactions related to the project. The current transaction supports development of five blocks in the Bay of Campeche: Akal, Nohoch, Chac, Kutz and Sihil. The guaranteed lender on the transaction is ABN Amro Bank, Chicago, Illinois.

-- New Pidiregas Projects:
A $ 400 mm long-term loan guarantee will support US exports for the New Pidiregas Projects (NPP), consisting of 23 natural gas and crude oil exploration sites located on- and offshore near the Bay of Campeche off the northern coast of the Yucatan. The transaction involves 297 US exporters and suppliers. Lead exporters include Solar Turbines, San Diego, California; Noble Drilling Carmen, Sugar Land, Texas; Noble Mexico Services, Houston, Texas; Corpac Steel Products, Miami, Florida; Schlumberger Technology, Sugar Land, Texas; Halliburton Energy Services, Houston, Texas; Bender Shipbuilding & Repair, Mobile, Alabama; and BJ Services, Houston, Texas.
The project work will consist of continuing natural gas and crude oil exploratory and development activities, plus optimisation work on existing Pidiregas fields. Ex-Im Bank already has authorized two transactions related to NPP projects. The guaranteed lender on the current transaction is BNP Paribas, New York, NY.

Pemex, the world's third largest petroleum producer, is one of the largest contributors to US imports of petroleum resources, comprising 16 % of such purchases.
Ex-Im Bank this year marks its 71st year of helping finance the sale of US exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2004, Ex-Im Bank, an independent federal agency, authorized financingto support approximately $ 17.8 bn in US exports worldwide, a 25 % jump from a year earlier.