Crane operator Rock Opera Central Inc., based in Oklahoma City, has been awarded a $1.2 billion federal loan guarantee, the first of its kind.
Rock Opera’s loan guarantees have a five-year term and will be repaid in a separate loan agreement with Chevron, the largest U.S. oil producer.
The loan guarantee comes after Rock Opera signed a preliminary agreement with the Federal Energy Regulatory Commission to provide $1 billion to help Rock Opera expand its production of oilfield sandstone.
The company said it plans to begin production in 2020 and expects to sell its oil sands sandstone to customers in the U.K., Australia, Norway, the United States and Russia.
Rock Operators will use the money to expand its operations and hire more workers.
The Rock Opera facility has been producing oil sands sands sandstones since 1976.
It also makes the sandstone for other projects.
The government loan guarantee covers Rock Opera, which operates five plants in Oklahoma, Texas, Arkansas and Oklahoma.
Rock Operator has the option to purchase more sandstones, which it has done for a time, but its production has been shrinking.
The plant was scheduled to close in 2020.
The U.A.E. Energy Department awarded Rock Opera the $1,250-million loan guarantee on Thursday.
“Rock Opera Central is a leading operator of oil sands, sandstone and sand-sandstone processing facilities in Oklahoma,” Energy Secretary Steven Chu said in a statement.
“The $1 million loan guarantee provides us with an incentive to maintain Rock Opera as the largest producer of sand-sands sandstone in the country.
The additional production of the oil sands will support our ability to expand our operations and employ more workers.”
Rock Opera said it expects to hire 50 people by the end of the year.
The $1-billion loan guarantees come after the Federal Reserve approved $1 trillion in stimulus funds, which are now being used to buy billions of dollars in Treasury bonds.
The Fed, which is a member of the Federal Deposit Insurance Corporation, announced Thursday that it will lend money to businesses that expand and hire workers.