US Ex-Im Bank has approved a US$400mn long-term loan guarantee to support the sale of equipment and services by Nabors Industries and 166 other US suppliers to Petroleos Mexicanos (Pemex) for the New Pidiregas Projects (NPP).

NPP is made up of 23 natural gas and crude oil exploration and production sites located offshore in the Bay of Campeche off the northern coast of the Yucatan, and onshore in northern Varacruz and northwestern Tabasco. The goal of the projects is to increase Mexico’s production capacity to 4mn barrels of oil and 7bn cubic feet of gas per day by 2006.

Nabors Industries will provide around 26% of the total exports related to this transaction. Equipment and services provided by Nabors Industries together with 14 other US suppliers will constitute 85% of the contract amount. The companies are: Baker Hughes Oilfield Operations; BJ Services; Halliburton Energy Services; Hasue & Associates; Noble Drilling; Noble Drilling Services; Weatherford Inc; Schlumberger Technology; Solar Turbines; Pride Offshore; Varco International; Landmark Graphics; Consorcio Drillmar; and G & W Systems Consulting.

Pemex, Mexico’s government-owned oil and gas company, is the second largest petroleum producer in the world after Saudi Arabia. It provides around one third of Mexico’s federal budgetary revenues. The company also is a long-time Ex-Im customer.

The guaranteed lender on the transaction is BNP Paribas, New York.