The Export-Import Bank (Ex-Im Bank) of the United States on Thursday said that it had signed a deal for a $13.1 million loan guarantee to back the sale by Halliburton Energy Services, of Houston, TX, of state- of-the-art LWD technology, services, and equipment to Nigerian company Drillog Petro-Dynamics Ltd., of Port Harcourt.
The company will use the technology to glean information about the drilling process, well geometry, and rock and fluid properties for major international oil firms with operations in Nigeria.
HSBC Bank PLC, London, is the transaction's guaranteed lender. Nigeria's Diamond Bank is borrowing the money.
Nigeria is the world's eight-largest producer and exporter of oil and the largest African producer. Nigeria hosts many of the world's largest oil and gas corporations such as Royal Dutch Shell and British Petroleum (BP).
Nigeria depends on oil for over 90% of its export revenues.
However, it is a very troubled country. Nigerian gunmen have disrupted and damaged oil supply lines and kidnapped oil company officials and workers, out of resentment at not receiving what they believe should be their fair share of the oil wealth that Nigeria has been enjoying.
Beginning in the early 1990s, the southern part of the nation was hit by seizures of oil installations and abductions as the militant youths insisted that the people deserved more of the oil revenues.
By the end of that decade, Nigerian oil production was sometimes diminished by over 30% off of capacity because of constant disruptions by the militants. The multinational oil producers began to feel the risks to their operations more keenly, and prices on the world market sometimes fluctuated dramatically because of the militant actions in the Niger Delta in spite of the fact that onshore oil production costs in Nigeria are the lowest in the world.
In recent times, the continued aggression of the militants, which has included burning oil wells, has often led to temporary but sharp price increases for crude oil, which has driven up gas prices in the United States and elsewhere in the developed world.
The hope seems to be that modernizing Nigerian oil producing infrastructure can increase production, making the supply line less vulnerable to the militants' activities and maybe increase revenues enough to start having a "trickle down" effect and give the people at least some of what they want.
"This transaction supports U.S. jobs, and also equips Drillog Petro-Dynamics to be the first Nigerian local service company to offer these advanced drilling services to oil majors. We believe African markets offer great potential for American exporters, and our financing support can help make more transactions like this a reality," said Ex-Im Bank Chairman and President James H. Lambright.
Your Ads At Here
Halliburton Gets Backing for Sale of Oil-Drilling Technology to Nigeria
8:49 AM | company, drilling, oil, petroleum, tradingRelated Posts by Categories
company
- Exxon Argues for Alaskan Oil Lease
- China's LPG imports hit 6.89 mln tons in 2007
- China Huaneng the winner in race to buy Tuas Power
- Kuwaiti firm buys shares in Sudanese oil Petrodar
- Native Leader Serving Six Months for Opposing Mine
- Chevron Corporation Financial Analysts
- ConocoPhillips Describes Business Strategies Intended to Deliver Growth and Enhance Shareholder Value
- Oil, gas exploration gets costlier after govt clarifies ship rental tax
- Coastal likely to clinch new offshore support vessel orders
- Troop surge won't stop Iraq oil fraud, insurgency: leading Democrat
- CORRECTED - Oil prices rising due to speculation-OPEC president
- Victoria Petroleum Announces Growler Oilfield Commences Production PEL104, Cooper Basin
- Cairn plans more exploration in B'desh after gas find
- Panda Energy to build natural gas fueled power plant in Sherman
- Rising oil prices spread beyond gas
- Texas pump prices hit record highs
- Offshore oil boom business for isle shipyards
- Crude oil price rising: Need to reduce consumption
- Oil gives up around a dollar on profit-taking, US recession fears
- Mining Oil and Gas Exploration New Investment in India
- Stocks tumble as Bear Stearns liquidity crisis unnerves investors
- Berry Petroleum says it's being investigated for 2,500-barrel spill
- Edge Petroleum Swings to 4th-Qtr Loss, Hurt by Volatile Commodity Prices and Higher Costs
- Central Petroleum Provides 140308 Exploration Update
- Pilgrim Petroleum Announces Update in Operations for Q1 2008
oil
- Mining Oil and Gas Exploration New Investment in India
- Exall Announces Exceptional Flow Test on Oil Discovery
- TXCO Resources expands Texas holdings for nearly $20M
- Petroleum Feeds Patriarchy
- Tesco Corporation to Present at the Bear Stearns 2008 Global Oil & Gas Conference
- Oil hits record 107.44 dollars
- Marathon Oil CEO, Others Call for Integrated Energy, Climate Change, Foreign Policy
- Oil and gas giant BP settles price-fixing
- Crude oil up again, briefly tops $92 a barrel
- 6 oil workers kidnapped in Nigeria
- Petro-Canada still plans oil sands developments
- Oil hits record above $92 on weak dollar, Nigeria
- Oil returns to Canadian Arctic
- Dodsal forays into exploration of oil and gas in Tanzania
- Clean Energy Signs Deal to Increase LNG Resources in Southwest
- CNX Gas Reports Results, Including Record Frac Production in Virginia
- Alberta Premier's TV Address Skirts Oil, Gas Royalty Issue
- Lions Petroleum Inc.: Phase One Financing Agreement Signed
- Nepal Rises Petroleum Prices To Curb Losses At State Firm
- Odds better for $100 oil than Chelsea winning title
- Nigerian court removes governor of oil state
- Oil and gas giant BP settles price-fixing, environment charges
- Lucas Energy Acquires Major Stake in Bonanza Oil & Gas
- Delta Petroleum Corporation Provides Update on Operating Activities
- Chavez Says Venezuela State Oil Company PDVSA to Expand Work Force
drilling
- Iraq to Open More Oil Fields to Bidding
- Anadarko Petroleum appoints senior vice president
- Total Mining and Oil Exploration, acquires 40 pct stake in new deep offshore concession in Nigeria
- Montello Suspends Drilling Operations After Encountering Hydrocarbons in Morgan Highpoint # 3 Test Well
- SAGA Oil ASA: Fourth Quarter 2007 Report
- TransGlobe Energy Slides To Loss In Q4 - Update
- Chevron Corp. to start work on big Gulf of Thailand gas project
- Profit-taking pulls oil back from $103
- Alberta Royalty Increase Seen Hurting Small Producers (Update1)
- 6 oil workers kidnapped in Nigeria
- PetroSA Makes Plans for New Oil And Gas Facilities
- CNX Gas Reports Results, Including Record Frac Production in Virginia
- uncan Energy Partners Reports Third Quarter Results
- Gazprom Chooses StatoilHydro to Participate in $30 Billion Gas Project in the Barents Sea
- Occidental Petroleum "hold," target price raised
- Majestic Oil & Gas, Inc Drilling Wildcat Natural Gas Well in Northern Montana
- Atlas America, Inc. Declares Cash Dividend of $0.05 per Share
- Lions Petroleum Inc.: Phase One Financing Agreement Signed
- Nepal Rises Petroleum Prices To Curb Losses At State Firm
- Crude oil futures surge almost $3, back above $90
- Delta Petroleum Corporation Provides Update on Operating Activities
- Chavez Says Venezuela State Oil Company PDVSA to Expand Work Force
- Oil Drilling : Small Oil Co. Makes Big Arctic Gamble
- Oil prices slip despite supply news
- Oil, gas drilling not expected to ease up