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Indonesia
FOR IMMEDIATE RELEASE
Monday, February 4, 2002
For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744
OPIC ANNOUNCES INDONESIAN OIL PROJECTS
WASHINGTON, D.C. - Subject to normal due diligence and final contract
arrangements between the parties, OPIC announced today that it will provide
support of up to $350 million in OPIC financing for two offshore oil and
natural gas projects in Indonesia. The projects, which will yield an estimated
145 million barrels of oil, are sponsored by California-based Unocal Corporation.
OPIC's financing nearly single-handedly fulfills a joint initiative of
OPIC, the U.S. Export-Import Bank and the U.S. Trade and Development Agency
to provide $400 million in loans and guarantees to finance U.S. investments
in Indonesia. The initiative, announced last September, specifically targeted
the oil and gas sector.
The projects, in which both Unocal and Pertamina, the Indonesian state
oil and gas company, will participate, will develop the West Seno offshore
crude oil and natural gas fields in the Makassar Straits off East Kalimantan.
Production from both projects will be sold in Indonesia and in the general
Asian petroleum market.
West Seno I, the first project, will feature construction of a deep-water
production platform, a floating processing unit, and two 60-kilometer
oil and gas pipelines from the platform to an existing terminal at Santan;
and the drilling of more than 20 production wells. OPIC is providing a
$300 million loan to this project.
West Seno II, which will receive a $50 million loan from OPIC, will involve
construction of a second deep-water drilling platform and the drilling
of an additional 20+ production wells. The second project will share processing
and transportation infrastructure with the first.
OPIC President and CEO Dr. Peter Watson said the projects "demonstrate
U.S. investor confidence in the stability of Indonesia and its reform
efforts. OPIC is pleased to support both a U.S. business and Indonesia's
efforts to become oil independent."
The projects will generate approximately $200 million in procurement in
Indonesia, as well as roughly $66 million in procurement in the United
States.OPIC is currently providing $244 million in political risk insurance
and $216 million in financing to projects in Indonesia.
OPIC's political risk insurance and financing help U.S. businesses of
all sizes invest in 140 emerging markets and developing nations worldwide.
Over the agency's 30-year history, OPIC has supported $138 billion worth
of investments that have helped developing countries to generate over
$10 billion in host-government revenues and create nearly 668,000 host-country
jobs. OPIC projects have also generated $63.6 billion in U.S. exports
and create nearly 250,000 American jobs.
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