TULSA, Okla., Oct. 23 /PRNewswire-FirstCall/ -- Williams (NYSE: WMB) and
Hanover Compressor Company (NYSE: HC) announced today that they have closed a
$230 million non-recourse project financing of the PIGAP II high-pressure gas
compression project in Monagas State, Venezuela. Proceeds from the loan will
be used to repay Williams and Hanover, based on their respective ownership
percentages, for the initial funding of construction-related costs. Williams
and Hanover, respectively, own 70 and 30 percent interests in the project.
The loan was financed by the Overseas Private Investment Corporation
(OPIC) and ABN AMRO, with ABN AMRO's portion of the financing supported by the
Italian Export Credit Agency, Istituto per I Servizi Assicurativi del
Commercia Estero (SACE). The loan carries an interest rate that does not
exceed 6.65 percent and matures in 2016.
The project repressurizes the oil fields in eastern Venezuela for
Petroleos de Venezuela, S.A. (PDVSA), allowing enhanced recovery of oil.
Construction on this high-pressure compression project in eastern Venezuela
began in 1999. The second-largest compression plant in the world, PIGAP II is
designed to daily re-inject between 1.2 billion cubic feet and 1.4 billion
cubic feet of natural gas at up to 9,000 pounds per square inch to enhance
PDVSA's crude-oil production and recovery from the Santa Barbara/Pirital
Field.
About Williams
Williams, through its subsidiaries, primarily finds, produces, gathers,
processes and transports natural gas. Williams' gas wells, pipelines and
midstream facilities are concentrated in the Northwest, Rocky Mountains, Gulf
Coast and Eastern Seaboard. More information is available at
www.williams.com .
About Hanover
Hanover Compressor Company (www.hanover-co.com ) is a global market leader
in full service natural gas compression and a leading provider of service,
fabrication and equipment for oil and natural gas processing and
transportation applications. Hanover sells and provides this equipment on a
rental, contract compression, maintenance and acquisition leaseback basis to
oil and natural gas production, processing and transportation companies that
are increasingly seeking outsourcing solutions. Founded in 1990 and a public
company since 1997, Hanover's customers include both major and premier
independent oil and gas producers as well as national oil and gas companies.
Portions of this document may constitute "forward-looking statements" as
defined by federal law. Although Williams and Hanover each believes any such
statements with respect to them are based on reasonable assumptions, there is
no assurance that actual outcomes will not be materially different. Any such
statements are made in reliance on the "safe harbor" protections provided
under the Private Securities Reform Act of 1995. Additional information about
issues that could lead to material changes in performance of Williams or
Hanover, as applicable, is contained in such company's annual reports filed
with the Securities and Exchange Commission.
SOURCE Williams Energy Partners L.P.; Hanover Compressor Company
-0- 10/23/2003
/CONTACT: Julie Gentz, media relations, +1-918-573-6932, or Richard
George, investor relations, +1-918-573-3679, both of Williams; or Lee
Beckelman, investor relations of Hanover Compressor Company, +1-281-447-8787/
/Web site: http://www.williams.com
http://www.hanover-co.com /
(WMB HC)
CO: Williams Energy Partners L.P.; Hanover Compressor Company; Overseas
Private Investment Corporation; ABN AMRO; Petroleos de Venezuela, S.A.
ST: Oklahoma, Texas, Venezuela
IN: OIL
SU: FNC
CT-AW
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9173 10/23/2003 17:30 EDT http://www.prnewswire.com