Pluspetrol Norte Secures US$75mn Credit Suisse Loan
Credit Suisse First Boston (CSFB) is the investment banking arm of Credit Suisse Group. Pluspetrol Norte is the largest oil producer in Peru, and the loan will be used to pay for maintenance and the drilling of new wells in its 1AB and 8 blocks, Garzon said.
Despite the current market conditions in Latin America and the uncertain climate due to the war in Iraq, Pluspetrol is confident that it can secure credit from international banks. "Pluspetrol produces oil which is a commodity and so it is much less risky than other kinds of activities that are focused solely on the domestic and regional markets," Garzon said, adding "an important part of Pluspetrol's income comes from exports."
"Obviously the conflict [in Iraq] generates instability in the crude markets but we don't expect the price to drop much more," he continued. The loan is "a good indicator that there is international financing available for Latin American oil companies," Garzon said, adding that the loan is part of Pluspetrol's "global financing strategy." The loan is independent of the Camisea project, in which Pluspetrol Norte's fellow subsidiary, Pluspetrol Peru Corporation, has a stake.
The loan will free up funds at the parent company, allowing Pluspetrol to focus on the Camisea project, Garzon said. Pluspetrol and other members of the Camisea consortium are currently seeking some US$400mn in financing from the Inter-American Development Bank (IDB) and the Andean Development Corporation (CAF). As for Pluspetrol's plans to sell part of its participation in the upstream and/or downstream Camisea consortiums, "I would rather not make any statement until we have something concrete," Garzon said.BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.
Click here for a Free two week trial to our Latin America Oil & Gas information service.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally