AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 18 June 2009 the Export-Import Bank of Korea announced that it had provided US$300 million in financial support to a Korean bidder for a Brazilian contract to build two drillships. The relevant press release notes:
"The drillships constructed by DSME(Daewoo Shipbuilding & Marine Engineering) are high value-added ships costing as much as US$700 million per ship. These ships will contain a Drilling Package able to drill as much as 40,000 feet under the sea and is self-propelled for independent movement.
"The customized Structured Finance of US$300 million combining US$165 million in loans and US$135 million in guarantees will be provided to the Brazilian drilling-equipment firm, Odebrecht Oleo e Gas, for its order of the two drillships."
The press release also contains the following revealing remarks: "Korea Eximbank added, "this financing will have a positive influence on domestic ship-builders to win more orders from Petrobras, which is planning to invest U$174 billion over the next five years" and "the Bank will expand financing for marine drilling equipment to take advantage of this opportunity."
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