FOR IMMEDIATE RELEASE
Wednesday, May 22, 2002

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For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744

OPIC BOARD APPROVES $250 MILLION IN INSURANCE FOR PROJECT IN CHAD

WASHINGTON, D.C. – The board of directors of the Overseas Private Investment Corporation (OPIC) approved up to $250 million in OPIC political risk insurance for the drilling and repair of oil and gas wells in southwestern Chad – OPIC’s first project in the African country, one of the world’s least-developed economically.

Pride International, Inc., headquartered in Houston, sought political risk insurance coverage for its contract to provide oil field drilling services to Esso Exploration and Production Chad, Inc.  Pride is deploying five mobile rigs in Chad’s southwestern Doba Oil Basin, comprising the Miandoum, Bolobo and Komé oil fields.

OPIC President and CEO Dr. Peter Watson said the project reflected the high priority OPIC has placed on economic development in sub-Saharan Africa, following his two trips to sub-Sahara Africa this year and the announcement last October of a $200 million support facility to augment the African Growth and Opportunity Act.

Dr. Watson also said the project satisfied OPIC requirements that projects provide substantial developmental benefits while also creating employment opportunities for American workers and having a positive impact on the U.S. balance of payments.

“OPIC is providing support to a project with substantial positive developmental benefits in both the short and long term and is providing long-term political risk insurance that Pride was unable to obtain in the private market,” Dr. Watson said.

The project will generate nearly $2 million annually in taxes for the Chadian government, employ more than 310 local workers, and lead to $14 million in local procurement during the first five years of project activities.

OPIC was established as an independent agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

Over the agency’s 30-year history, OPIC has supported $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated $64 billion in U.S. exports and create more than 253,000 American jobs.