Ex-Im Bank preliminarily agrees to $2 billion of financing for Petrobras

A preliminary $2 billion financing commitment to Petroleos Brasileiro SA may lead to contracts for US companies with Brazil's national oil company, the Export-Import Bank of the United States said on May 7.

May 15th, 2009

A preliminary $2 billion financing commitment to Petroleos Brasileiro SA may lead to contracts for US companies with Brazil's national oil company, the Export-Import Bank of the United States said on May 7.

The Ex-Im Bank said that it is making the investment to encourage Petrobras to buy US goods and services. It added that it anticipates the financing will support more than $2.2 billion of US exports to Petrobras once it is finally approved.

"Petrobras presents an enormous opportunity for US exporters in the oil and gas and many other sectors," said Barbara O'Boyle, the Ex-Im Bank's vice president for structured finance.

The bank, which is the official US export-credit agency, said that it expects this preliminary commitment to give Petrobras the opportunity to identify potential US exporters for its projects over the next two years.

Once the preliminary commitment becomes final, the financing could be used to support US exports on repayment terms of up to 10 years, including a potential conversion of part of the financing to establish a medium-term (1-7 years) credit guarantee facility, it said.

Petrobras, which expects to invest $174 billion in development over the next five years, could use US goods and services financed under the agreement to develop its offshore oil and gas resources, particularly the large pre-salt reserves in the Santos Basin, and to develop and upgrade its refining and distribution system, according to the Ex-Im Bank.

It said that US companies of all sizes interested in exploring export opportunities with Petrobras should contact Philip Limon, treasurer of Petrobras America Inc. in Houston, by phone at (713) 808-2160 or by e-mail at plimon@petrobras-usa.com to learn more about the company's bidding process and how to participate in transactions which the Ex-Im Bank could financially assist.

Contact Nick Snow at nicks@pennwell.com

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