Cameron Type U BOP Financing
Finance a Cameron Type U blowout preventer for land drilling operations. Oilfield equipment lenders, challenged credit reviewed, streamlined oilfield files to $400k, funded.
Pressure control is not optional equipment, and the Cameron Type U has been the BOP of record on land rigs across the Permian, SCOOP/STACK, and DJ Basin for decades. The Type U is a ram-type blowout preventer using Cameron's unlatch mechanism, offered in bore sizes from 7-1/16 inches to 13-5/8 inches and working pressure ratings from 5,000 to 15,000 psi depending on configuration. A drilling contractor adding a rig to the fleet, or upgrading pressure-control equipment on an existing spread to meet current operator specifications, faces a capital decision that often lands in the six-figure range before accounting for installation and testing.
Financing a Cameron Type U through a lender who understands pressure-control collateral is materially different from a generalist transaction. We work with drilling contractors and well servicing companies on BOP acquisitions -- new units, recertified units from the secondary market, and equity pulls on Cameron BOPs already sitting on an operating rig. Our minimum is $50,000. For qualifying deals under approximately $400,000, short-form oilfield financing is available without a full financial statement package.
Cameron Type U BOP: Configuration and Collateral Profile
The Type U designation refers to Cameron's unlatch ram design, which allows the ram blocks to be retrieved from the bore without fully removing the BOP from the wellhead stack. That feature simplifies ram inspection and changeout in the field and is part of why the Type U became a preferred unit for land operations where rig moves are frequent and maintenance windows are short. The BOP is rated to contain wellbore pressure up to its working pressure rating, with the bore size matched to the casing size being drilled.
Most North American land drilling programs encounter the Type U in either a 13-5/8-inch or 11-inch bore configuration with pressure ratings of 5,000 or 10,000 psi, though 15,000-psi units are specified for deeper, higher-pressure zones in basins like the Delaware Basin section of the Permian. The working pressure and bore size define both the well program the unit can serve and its value in the secondary market.
Recertified Cameron Type U units trade actively in the oilfield equipment secondary market. A BOP that has been pressure-tested, rebuilt to OEM spec, and recertified by a qualified shop with documentation is a strong collateral asset. Lenders familiar with the category know what a recertified Type U is worth and can advance accordingly. The documentation matters: a Type U with a current API certification, a complete inspection report, and a traceable reconditioning history is worth financing at better terms than one with gaps in the paper trail.
We also finance Cameron Type U units as part of a complete BOP stack package, including annular preventers, choke manifolds, and associated pressure control components bundled into a single transaction.
How BOP Financing Works
A Cameron Type U purchase or refinancing starts with the equipment documentation: the manufacturer's data sheet or OEM serial number information, the purchase agreement or invoice, and for used or recertified units, the inspection and recertification records. We review that alongside recent operating statements and a one-page credit application.
For deals under $400,000, the credit decision typically comes back within one business day. Approval includes a term sheet with the rate, loan term, and monthly payment. We do not adjust pricing between approval and closing. Funding goes to the seller on a purchase transaction, or back to the operator on a sale-leaseback or refinance.
Terms on Cameron BOP transactions depend on whether the unit is new or recertified and what the total transaction amount is. New units from a Cameron distributor typically support terms up to 60 to 72 months. Recertified units generally get 36 to 48 months, structured so the remaining loan balance tracks the asset's practical service life. Both paths result in the operator owning the BOP at payoff, which is the typical preference for pressure-control equipment that stays on the same rig for years.
Operators in Midland and across the Permian and Delaware Basin know that rig contracts have tight mobilization windows. Our process is built to close in approximately field-ticket review after a complete submission, so the BOP is on the stack and the rig is spudding on schedule.
Refinancing Cameron BOPs Already in the Fleet
A Cameron Type U that is paid off or nearly paid off has equity in it. That equity can serve the business in two ways: a refinance that returns capital while keeping the BOP on the rig, or a Equipment Sale-Leaseback that converts the full appraised value into cash with a leaseback arrangement that leaves the unit in service.
Drilling contractors who stockpile recertified BOPs as spare inventory sometimes use refinancing to release capital from idle units without selling them out of the fleet. If a contractor has two Type U units in storage waiting for a new rig contract, financing against that inventory converts static iron into deployable capital. When the new rig contract comes in, the units go to work and the day-rate revenue services the debt.
Equipment refinancing on a Cameron BOP follows the same basic asset review as a purchase. We establish current market value, look at the outstanding payoff if there is an existing lender, and structure the new note from there. Operators wanting to pull net equity above an existing payoff can request a cash-out refinance structure, which handles both the payoff and the equity release in a single transaction.
Related Equipment and Financing
The Type U BOP is one component of the pressure-control system on a land rig. The broader Cameron equipment financing page covers wellhead assemblies, gate valves, choke manifolds, and Christmas trees -- the full surface system that the BOP sits at the base of. Operators adding Cameron surface equipment alongside the BOP can bundle all of it into a single financing facility, which simplifies the paperwork and produces one monthly payment.
For operators comparing BOP sources or running mixed fleets, the Weatherford W-Series workover rig is a model page that covers comparable transaction structures on pressure-control-adjacent equipment from a competing manufacturer. Understanding how lenders treat different brands in the same equipment class helps when you are deciding which unit to buy and how to structure the purchase.
Contractors whose drilling program involves a full rig package, not just the BOP, can finance the complete spread through us. The drilling rig financing page covers how we handle multi-component rig transactions where the pressure-control package is one piece of a larger deal.
Questions before you send the file.
Straight answers about cameron type u bop financing, documentation, timing, and equipment eligibility.
My Type U BOP is already installed on a rig under contract. Can I still refinance it?
Yes. A BOP installed and operating on an active rig can be refinanced or sold and leased back without disrupting the drilling program. The lender perfects a security interest in the unit via a UCC-1 filing. The rig keeps drilling and you receive the refinance proceeds. We handle this structure regularly for contractors with active spreads.
What makes a recertified Cameron Type U easier to finance than an older BOP with no documentation?
Documentation is the primary variable. A recertified unit with a current API pressure test, an OEM serial number trace, a shop inspection report, and parts documentation is a known asset. A BOP with a vague history and no paper trail is a higher credit risk because the lender cannot verify what the unit is rated to do. Recertification records from a recognized Cameron service center or qualified BOP shop convert an uncertain asset into a financeable one.
I am buying a Cameron Type U from a private party, not a dealer. Does that affect my financing options?
Private-party transactions on BOPs are workable, but they require more documentation than a dealer purchase. You will need the bill of sale, serial number documentation, current recertification records, and ideally a third-party inspection or appraisal. The added paperwork is standard for a private transaction on high-value pressure-control equipment, and the timeline is typically a few days longer than a dealer deal.
Is 15,000-psi Type U financing treated differently from a 5,000-psi unit?
The higher-pressure unit typically carries a higher market value, which affects the transaction amount more than the credit structure. Both ratings are financeable. The lender looks at purchase price, condition, documentation, and the borrower's credit picture in the same way regardless of pressure rating. Higher-rated units in good documentation shape often support larger advance amounts given their stronger secondary market value.
Can I bundle a Cameron Type U with a wellhead package into a single loan?
Yes. Bundled transactions that include the BOP and associated surface control equipment from the same seller are handled as a single facility. One application, one term sheet, one UCC-1 filing. This is common for operators taking delivery of a complete wellhead and BOP package from a Cameron distributor or service company.
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