NORWAY BANK LOAN FUNDS DI'S LATIN AMERICA EXPANSION

DI Industries Inc., Houston, has obtained a $10 million loan from a Norwegian bank to fund expansion of its contract drilling operations in Argentina, Venezuela, and Mexico. DI Pres. Max Dillard said, "It has been a long time since markets were available to allow for new loans to drilling contractors." The bank's identity was not disclosed. Four rigs DI sent from the U.S. to Argentina are rigging up, bringing its fleet in that country to seven. Drilling is to begin this month.

Dec. 19, 1994

2 min read

DI Industries Inc., Houston, has obtained a $10 million loan from a Norwegian bank to fund expansion of its contract drilling operations in Argentina, Venezuela, and Mexico.

DI Pres. Max Dillard said, "It has been a long time since markets were available to allow for new loans to drilling contractors."

The bank's identity was not disclosed.

Four rigs DI sent from the U.S. to Argentina are rigging up, bringing its fleet in that country to seven. Drilling is to begin this month.

DI sent two rigs from the U.S. to Venezuela that have begun work on 18 month and 2 year contracts. They joined a four rig fleet being acquired through the purchase of a 90% interest in a Venezuelan drilling contractor. The acquisition is to be complete by yearend with an effective date of Sept. 1, 1994.

In addition, Mexico's state owned electric utility, Commission Federal Electricidad awarded to DI two geothermal drilling/workover contracts totaling $12.9 million. DI has moved four rigs to Mexico, and work on those contracts is under way.

Dillard noted the expansion is in keeping with his company's decision to focus operations in North, Central, and South America.

"These markets will balance the company until the U.S. market recovers," he said.