FOR IMMEDIATE RELEASE October 20, 1996
Angela M. Phifer (202) 565-3200
The Export-Import Bank of the United States (Ex-Im Bank) has approved support for $200 million in exports by Halliburton Energy Services, Houston, TX, for the sale of oil well services to the Cabinda oil field offshore Angola. Use of a secured offshore escrow account allowed Ex-Im Bank to support the deal even though the Bank is not open for routine transactions in Angola.
Offshore oil operations have been conducted in Cabinda for nearly forty years. The area is a large and highly developed oil production system. Ex-Im Bank`s guarantee of an $88.6 million loan by Societe Generale, New York, NY will enable Halliburton to perform oil well completion and remediation services for four years in the Cabinda Concession Area. The financing provided to borrower Sonangol, the Angolan national oil company, will be secured by the proceeds of oil sales through an offshore escrow account. In addition, Banco Nacional de Angola (BNA), the central bank of Angola, is also providing a repayment guarantee to Ex-Im Bank.
Ex-Im Bank always seeks ways to maximize support for U.S. firms exporting to Sub-Saharan African countries in transactions which offer a reasonable assurance of repayment, said Ex-Im Bank Director Rita M. Rodriguez. The creative use of an offshore escrow account for a portion of this sale, makes this transaction possible.
Ex-Im Bank is an independent U.S. government agency that helps finance and promote the sale of U.S. goods and services around the world.