The U.S. Export-Import Bank has issued a credit guarantee to enable nine U.S. companies to sell up to $56 million in oil and gas development equipment and services to Sonatrach, Algeria's state-owned oil and gas company.
Sonatrach plans to buy capital equipment and services from: Intermark Inc., Tulsa; General Electric, Schenectady, N.Y.; Ebara International Corp., Sparks, Nev.; M.W. Kellogg Co. and Ava Guiberson, both of Houston; and Holman Boiler Works Inc., Halliburton Co., Degolyer & MacNaughton, and Dresser Industries Inc., all of Dallas.
The bank said more U.S. suppliers are expected to receive orders soon under the credit facility.
Ex-Im Bank Pres. and Chairman James Harmon said, "This transaction continues a very successful, long-standing relationship between Ex-Im Bank and Sonatrach that benefits both U.S. exporters and Algerian economic development."
Since 1989, Sonatrach has used Ex-Im Bank programs to finance oil well workovers, compressor stations, and oil and gas pipelines. Ex-Im Bank provided two successful credit guarantee facilities for Sonatrach in 1992 for oil and gas field development. In fiscal 1997, Ex-Im Bank authorized $150.4 million in financing to support U.S. exports to Sonatrach.
Sonatrach Pres. and CEO Abdelmadjid Attar said the action shows the bank's "continued confidence in assisting in the development of Algeria's hydrocarbon resources."
The credit guarantee facility is being provided through Citibank NA, Manama, Bahrain.
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