U.S. EXIMBANK APPROVES LOAN GUARANTEES FOR PEMEX DRILLING

The U.S. Export-Import Bank has signed two loan guarantees to support sale of $379.2 million in U.S. offshore oil equipment and services to Mexican state petroleum company Petroleos Mexicanos. A $235.3 million guarantee will be used to finance drilling services, oil field services, and heavy marine construction for an undisclosed oil field delineation program in the Gulf of Campeche off Mexico. And a $113.1 million guarantee will be used to finance U.S. oil services and equipment for the

Aug. 16, 1993

3 min read

The U.S. Export-Import Bank has signed two loan guarantees to support sale of $379.2 million in U.S. offshore oil equipment and services to Mexican state petroleum company Petroleos Mexicanos.

A $235.3 million guarantee will be used to finance drilling services, oil field services, and heavy marine construction for an undisclosed oil field delineation program in the Gulf of Campeche off Mexico.

And a $113.1 million guarantee will be used to finance U.S. oil services and equipment for the development of Caan oil field, also in the Gulf of Campeche.

Principal U.S. exporters will be Sonat Offshore Co. and Triton International, both of Houston. They will serve as subcontractors to Mexican companies Perforadora de Mexico and Faja de Oro, providing personnel and capital equipment for the two projects. Triton (OGJ, Apr. 29, 1991, p. 44) and Sonat (Dec. 30, 1991, p. 39) each previously worked under drilling contracts to Pemex.

Union Bank of Switzerland is the commercial lander for the projects.

Pemex in 1991 disclosed a more ambitious Campeche Sound drilling program that called for 113 wells, nine platforms, and related facilities in Caan, Maloob, and Zaap fields with the assistance of almost $1.3 billion in Eximbank loan guarantees (OGJ, Sept. 23, 1991, Newsletter).

Last year, Pemex requested Eximbank cancel part of that credit line, saying the work was on hold due to low oil and gas prices. Mexico City business daily El Financiero at the time quoted Mexican government sources as saying the Pemex decision also was affected by the level of progress on the North American Free Trade Agreement (OGJ, Sept. 28, Newsletter).

U.S. MEXICAN RELATIONS

Eximbank Chairman Kenneth Brody said, "Pemex leads one of the most dynamic sectors of Mexico's economy and Mexico is Eximbank's biggest and best customer. This transaction would not have been possible without the reforms undertaken by Pemex, and it demonstrates the benefits of President Salinas' economic and trade liberalization policies."

Exmibank said the two guarantees comprise one of the bank's largest transactions in Mexico and the first such financial agreement between Eximbank and Pemex in 15 years.

It noted Pemex was reorganized in 1992 into a holding company with four operating subsidiaries, which will provide unconditional guarantees for Pemex's obligation in the transaction.

Ernesto Marcos-Giacoman, Pemex's chief financial officer, said the loan guarantees "will promote the cooperation between oil related industries in Mexico and the U.S.' He said Pemex's long term financing strategy is to allocate all external funding to specific investment projects to promote the efficient use of trade finance resources.

Eximbank is the U.S. government agency that facilitates the export financing of U.S. goods and services. In fiscal 1992 it helped finance $14 billion in sales of U.S. exports.