JBIC Signs Loan Agreement with PEMEX for Chicontepec Oil and Gas Field Project

abarrelfullabarrelfull wrote on 20 Dec 2011 07:43

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The Japan Bank for International Cooperation (JBIC; President and CEO: Hiroshi Watanabe)*1 signed on March 4 (Mexican time) a loan agreement totaling up to 600 million US dollars with Petróleos Mexicanos (PEMEX) to finance the Chicontepec oil and gas field development project. The loan was cofinanced with private financial institutions (agent bank: Mizuho Corporate Bank, Ltd.), with JBIC providing a guarantee for their cofinanced portion.

The proceeds of the loan will be used by PEMEX to expand production facilities including drilling equipment and pumping stations, in the Chicontepec oil and gas field located in mid-eastern Mexico.

Currently there are eight independent power producer (IPP)*2 projects being operated by Japanese firms in Mexico, with their combined power generation capacity accounting for about 40% of the total capacity of the country's IPPs. Since a portion of the natural gas produced by PEMEX is used as fuel for these IPP power projects, this project is expected to provide a stable supply of gas to their power generation facilities, thereby contributing to their steady operation.

Mexico, one of the major oil and gas producers in the world, is making strenuous efforts to develop new oil and gas fields, aiming to maintain the current production volume. In the National Infrastructure Program (NIP)*3 launched by President Calderon in 2007, this project was designated a priority project. Meanwhile, since 2009 marked the 400th anniversary of exchange between Japan and Mexico, a variety of commemorative events have taken place from 2009 to 2010. Signing the loan agreement in this year of a historic milestone to finance the increased production and stable supply of oil and natural gas in Mexico will lead to stronger ties between Japan and resource-endowed Mexico.

JBIC is committed to supporting projects that will contribute to maintaining and improving the international competitiveness of Japanese firms, as well as strengthening ties with resource-endowed countries.

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