Italians get Norwegian guarantee to the value of billions for offshore purchases

The Italian oil services company SaipemThe Italian oil services company Saipem .Photo. Saipem

The Italian oil services company Saipem has signed financing agreements  for up to 6.2 billion kroner for the acquisition of Norwegian offshore technology .

The agreements provide predictable financing to Saipem based on their purchases of Norwegian goods and services out 2017. Purchases made in 2014 and 2015 are also covered by the agreements, according to a press release.

The purchases will be financed with 5.2 billion in loan guarantees, primarily from  the part of Giek that has to with debt financing from Export Credit Norway AS and banks,  Giek writes in a statement.

So far the agreement has benefited around 70 exporters benefit through contracts of over half a million euros,  E24 writes. The companies in question are companies that supply equipment, spare parts, services and rental contracts for ships. Giek mentions Aker, Kongsberg, National Oilwell Varco, Ocean Installer and Farstad Offshore as examples.

– It’s still a very difficult market situation for Norwegian suppliers and it is important to support this industry in these challenging times. The governmental loan guarantees from GIEK has now contributed to connecting Norwegian suppliers, foreign buyers and private and public capital – and ensured important export, Wenche Nistad, Managing Director  in Giek, says.

Source: NTB scanpix / Norway Today