US Ex-Im guarantees oil exports to Reliance

US Ex-Im is granting a US$400mn long-term loan guarantee to support US exports of equipment and services to Reliance Industries (RIL) in India for its onshore and offshore oil and gas exploration and production activities in the Krishna Godavari Basin in the Bay of Bengal.

The loan will be used for purchasing US engineering services, oil field equipment, offshore platform support and drill and well services.

Some of the financing will be used to support continuing work at the Jamnagar refinery, which has previously received US Ex-Im funds.

"India is a market with enormous prospects, and US Ex-Im bank is pleased to support this large energy development transaction on behalf of American exporters. Our support helped to make their exports competitive in the face of significant international competition backed by foreign export-credit agencies," comments US Ex-Im bank chairman and president James Lambright.

India is a key target market for US Ex-Im. In April 2008, the bank established an Indian infrastructure facility to support US exports to Indian projects in sectors such as power and renewable energy generation, oil and gas development, airport and seaport development, railway and urban transit and healthcare. This scheme now covers nine Indian banks, and has a financing capacity of US$2.45bn.