O.T. Diamond Bank facilitates $13.1m U.S.-EXIM loan to firm
By Gbenga Agbana
DIAMOND Bank has facilitated a high profile $13.1 million U.S.-EXIM loan guarantee to Drillog Petrol-Dynamics Ltd. which will enable the indigenous oil servicing firm to acquire state-of-the-art oil well measurement technology, equipment and services from U.S. based Halliburton Energy Services.
This development is a signpost of Diamond Bank's avowed support to indigenous oil and gas companies and the bank's pioneering role in advancing the Federal Government's local content policy initiatives.
Drillog Petro Dynamics will utilise the funds to acquire equipment, which will enable the company to capture information about the drilling process for international oil majors operating in Nigeria.
With this feat, Drillog Petrol-Dynamics become the first local services company to provide advanced drilling services to international oil majors.
As part of the purchase agreement, Halliburton will provide Drillog Petro-Dynamics with Logging While Drilling (LWD) technology and equipment to capture information about the drilling process, well geometry and rock and fluid properties at the well. Drillog Petro-Dynamics will also receive a service and training platform for its engineers and the rights for 21/2 years to bid on a right-of-first-refused basis with Halliburton, for oil service contracts tendered by oil majors in Nigeria, where LWD services being requested.
The Nigerian oil drilling business was before now dominated by the big multinational oil services companies that had exclusive access to state-of-the-art drilling equipment. Indigenous drilling companies such as Drillog Petrol-Dynamics were only capable of handling the less lucrative low-end drilling jobs.
To date Diamond Bank has facilitated the acquisition of various state-of-the-art drilling equipment in the region of $40 million on behalf of Drillog.
Diamond Bank is in discussion with the company to support further acquisition of state-of-the-art drilling equipment to support company's growth and oil exploration in Nigeria. This will consolidate the company's position as the frontline player in rendering drilling services in Nigeria and indeed Africa.
The U.S. -EXIM Bank, is an independent Federal Government agency. This year marks its 72nd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world. This bank last year authorised over $12.1 billion in export financing.
This included more than $532 million in support of 140 U.S. export transactions to 23 sub-Saharan African countries. Ex-IM Bank works with commercial leaders to help U.S. companies increase export sales and American jobs and minimise risk by accessing the bank's financing an export credit insurance.
It will be recalled that in June 2006, the US-EXIM Bank selected Diamond Bank to participate in its U.S. Trade Boost Programme following a successful study on the bank. The programme enables Diamond Bank expedite the processing of short and medium term U.S.-EXIM Bank financing for the purchase of U.S. goods and services by Nigerian buyers.
Diamond Bank's consistent success in accessing U.S.-EXIM Bank's funding for its clients is a reflection of the bank's growing international posture and a mark of confidence. Indeed, the bank had in the past attracted big ticket investments from other reputable international finance and trade organisations, such as
* the International Finance Corporation (IFC),
* Netherlands Development Company,
* Commodity Credit Corporation of the United States,
* working partnership with SINOSURE, the China Export-Credit Insurance Corporation for accelerated Chinese trade investments in Nigeria.
