Expert Workshop 2017

Deloitte, 1 Stonecutter Street, London EC4A 4TR

This page includes an outline of the content, topics and issues that will be discussed by speakers and delegates across the two day programme.

Day 1 – Tuesday 26 September 2017

13.30
Registration, refreshments and networking

14.00
Welcome from the Chair
John Martin FEI, World Petroleum Council

14.15
The energy challenge
Michael Waldron, Energy Investment Analyst, International Energy Agency
Read more

14.30
Recent developments in upstream oil & gas financing
Peter Gaw, Managing Director, Global Head Energy & Natural Resources, Standard Chartered Bank 
Guillaume Venner, Managing Director Oil & Gas, BNP Paribas

15.15
Recent developments in downstream oil & gas financing
Ian Cogswell, Managing Director, Global Head of Natural Resources & Offshore Infrastructure, NATIXIS

15.45
Refreshments and networking

16.15
Recent developments in renewable energy financing
Angus McCrone, Chief Editor, Bloomberg New Energy Finance
Timur Topalgoekceli, Energy Lead, Hello Tomorrow
Joost Bergsma, CEO and Managing Partner, Glennmont Partners
Paul Battelle, Director, Deutsche Bank

17.15
Panel discussion: Why invest in energy?

17.45
Closing remarks from the Chair

18.00
Drinks reception
Venue: Deloitte, 2 New Street Square, Ground Floor, London, EC4A 3BZ

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Day 2 – Wednesday 27 September 2017

08.30
Registration and refreshments

09.00
Opening remarks
John Martin FEI, World Petroleum Council

09.15
The role of oil & gas in an energy system in transition
Wim Thomas FEI, Chief Energy Advisor, Shell International

Financing and de-risking

09.45
Financing and de-risking: Legal and compliance risks
Jonathan Pickworth, Partner White & Case

10.15
Recent developments in energy commodity trading, hedging and derivatives
Xavier Veillard, Managing Director – Energy & Commodities Strategy – Europe, Accenture Strategy
Jon Therkleson, Senior Derivatives Marketer, BP

10.45
Refreshments and networking

Innovative financing strategies: debt and equity

11.15
A private equity perspective on energy industry investing & risk management 
Andrew Bartlett, Adviser, Helios Investment Partners

11.45
Recent developments in debt capital markets
Josh Presley, Head of CEEMEA Debt Syndication, Bank of America Merrill Lynch
Max Kendall, Director, Deloitte

12.15
The role of equity capital markets in financing oil & gas companies
Fergus Marcroft, Senior Advisor, Hannam & Partners

12.45
Panel discussion

13.00
Lunch and networking

Strategic developments in the UK North Sea and recent trends in Equity Markets and Oil & Gas mergers and acquisitions

14.00
Recent developments in equity markets
Andrew Foster, Co-Head of Corporate Broking, Morgan Stanley

14.15
Recent developments in mergers and acquisitions
Richard Kent, International Head of Investment Banking, Jefferies International

14.30
Mergers and acquisitions in the OFS market
Shaun Reynolds, Director, Mergers & Acquisitions, Deloitte

14.45
Insights from an international oil & gas company
Graham Talbot, Executive Vice President & CFO, Maersk Energy

15.00
Refreshments and networking

Financial and risk considerations in de-commissioning & abandonment

15.15
Recent developments and challenges concerning de-commissioning and abandonment
Marcus Flint, Senior Principal Consultant, DNV GL
Richard Jones, Partner, White & Case

15.45
Panel discussion

16.00
Summary and outcomes from the workshop

16.15
End of event

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Full Session Details

The energy challenge

Michael Waldron, Energy Investment Analyst, International Energy Agency

The major challenge for the oil and gas industry is to provide energy security in a world with increasingly complex challenges and uncertainties. The global energy system is undergoing a major transformation over the next decades as natural gas and renewables will become more important in meeting future energy demand growth.

Commitments made for the Paris Agreement on climate change underline the reality that fossil fuels will remain a key component of the global energy mix. However, government policies, as well as cost reductions across the broader energy sector, will enable strong growth in renewables, especially wind and solar.

In the long term, investment in oil and gas will remain essential to meet demand and to replace declining reserves. At the same time, improved science and increased investment will enable a range of renewable energy sources to supplement the supply of oil and gas, and to reduce reliance on coal in a number of countries.

This session will set the scene to enable the financial issues and challenges to be addressed during the Expert Workshop.

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Recent developments in upstream oil & gas financing

Peter Gaw, Managing Director, Global Head Energy & Natural Resources, Standard Chartered Bank 
Guillaume Venner, Managing Director Oil & Gas, BNP Paribas

Following the financial crisis in 2009 and the downturn in energy commodity prices, upstream exploration and development have been curtailed. Future growth in demand, driven mainly by global economic and population growth, will require renewed investment in upstream activities. This will require greater focus on how such investment will be financed in future years.

In addition to more traditional sources of finance such as corporate loans, reserve based loans, and production payments, more creative financing techniques and new sources of finance have been developed to ensure that sufficient funding is available for upstream exploration and production companies.

In response to increased political, economic and commodity price risks, oil and gas companies have been diversifying their sources of funding with a gradual shift from traditional bank financing to non-bank finance, private placements, and capital markets based financing.

This session will focus on the range of financing techniques that are available to meet future funding requirements in the upstream sector.

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Recent developments in downstream oil & gas financing

Ian Cogswell, Managing Director, Global Head of Natural Resources & Offshore Infrastructure, NATIXIS

The oil and gas industry is involved in global and regional supply chains that include domestic and international transportation, ordering systems, inventory control, materials handling, import/export facilitation and information technology.

Downstream supply chains play an important area of management attention in integrated oil companies and in specialist refining and oil product manufacturing operations.
Commercial banks can play an important role in providing supply chain finance, inventory finance and various types of trade finance for imports of raw materials and export of refined products and chemicals. Such financing techniques, including commodity hedging, can be designed to improve efficiencies and to increase product margins of oil companies.

This session will outline the various financial issues and risk mitigation measures that can be employed to facilitate improved supply chain economics and to finance international trade.

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Recent developments in renewable energy financing

Angus McCrone, Chief Editor, Bloomberg New Energy Finance
Timur Topalgoekceli, Energy Lead, Hello Tomorrow
Joost Bergsma, CEO and Managing Partner, Glennmont Partners
Paul Battelle, Director, Deutsche Bank

Continued growth in the development of renewable energies has focused the attention of project sponsors, investors, governments and the financial services sector on the important subject of sustainable finance.

Improved science and technology, coupled with increasingly competitive cost structures, has encouraged investors and financial institutions to support renewable energy projects, such as solar and wind amongst others.

Government incentive schemes, such as the Enterprise Investment Scheme and accelerated depreciation models, have attracted private investment into this sector. Financial institutions, including private equity houses, commercial banks, specialist “green” energy lenders, and development banks are increasing their involvement in renewable energy finance.

This session will focus on how various services of equity and debt finance can facilitate the funding of different types of renewable energy projects in the coming decades.

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Panel discussion: Why invest in energy?

According to the IEA, global energy demand will grow by more than 30% by 2035. China, India and the Middle East will account for 70% of that growth. Global oil demand will grow to more than 100mb/d, reflecting population growth and increased transportation needs. Oil prices are expected to rise to $125 per barrel by then. Demand for electricity is forecast to grow twice as fast as total energy consumption.

In recent years average returns on invested capital have been low compared to other industries, reflecting high capital and operating costs and lower commodity prices.

Many institutional and private investors have left the industry in search of more attractive investment opportunities.

This session will take the form of a panel discussion where industry and financial experts will debate the case for long term investment in the oil and gas industry.

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Recent developments in energy commodity trading, hedging and derivatives

Xavier Veillard, Managing Director – Energy & Commodities Strategy – Europe, Accenture Strategy
Jon Therkleson, Senior Derivatives Marketer, BP

This session will provide an overview of relevant legal and regulatory compliance requirements of oil and gas companies, and will also outline techniques for de-risking operations to enhance their capacity to raise finance.

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Recent developments in debt capital markets

Josh Presley, Head of CEEMEA Debt Syndication, Bank of America Merrill Lynch
Max Kendall, Director, Deloitte

In recent years, the shortage of public equity, coupled with tighter corporate credit conditions, resulted in a major funding challenge for the oil and gas industry. Banks were also faced with tighter lending controls in response to new regulations. There remains caution around risk management and the need to generate acceptable returns on risk adjusted capital.

Banks have now largely rebuilt their balance sheets and are becoming more active in providing debt finance. Companies have responded by accessing alternative sources of finance such as private placements, corporate bond markets, high yield and retail bond markets, various types of inventory finance, export credit finance, and multi-lateral development bank loans.

This session will focus on the wide range of debt finance available to the oil and gas industry, and will demonstrate that there is now more competition for funding from a broader group of financial institutions.

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Recent developments in equity markets

Andrew Foster, Co-Head of Corporate Broking, Morgan Stanley

Since the financial crisis, public equity markets have been effectively closed to the energy sector. The impact of rising industry costs, highly volatile energy commodity prices and increased economic and political risks, resulted in poor returns to shareholders and other equity investors. The appetite from investors to support IPO’s, new equity issues and rights issues was greatly reduced.

Sentiment in the public equity markets is gradually becoming more positive towards the sector. This is a positive development. A number of recent equity raisings has demonstrated “green shoots” of potential stock market recovery towards the oil and gas sector.

This session will outline current developments in the public equity markets and will highlight recent returns to investors and their investment criteria.

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Insights from an international oil & gas company

Graham Talbot, Executive Vice President & CFO, Maersk Energy

Although frequently regarded by some sections of the industry as a mature province, the North Sea and UKCS still offers interesting potential for the right players.

This session will provide current insights, from oil and gas industry experts and financial industry specialists, into new investment opportunities, asset acquisition and divestment, mergers and acquisitions, risk mitigation and risk sharing arrangements and key issues surrounding the subject of asset abandonment.

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Recent developments and challenges concerning de-commissioning and abandonment

Marcus Flint, Senior Principal Consultant, DNV GL
Richard Jones, Partner, White & Case

Although frequently regarded by some sections of the industry as a mature province, the North Sea and UKCS still offers interesting potential for the right players.

This session will provide current insights, from oil and gas industry experts and financial industry specialists, into new investment opportunities, asset acquisition and divestment, mergers and acquisitions, risk mitigation and risk sharing arrangements and key issues surrounding the subject of asset abandonment.

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The role of oil & gas in an energy system in transition

Wim Thomas FEI, Chief Energy Advisor, Shell International

The world is facing an accelerating energy transition. The manner in which energy is produced, distributed and consumed is changing at a rapid pace. As the energy consumer moves to centre stage, oil and gas companies will need to transform from a provider-centric to a consumer-centric business model. The industry will need to adapt quickly to identify the customers and markets in which to operate and invest.

New investments will be required in natural gas, including LNG, to meet future emerging market demand. Increased investments will be required in new energy technologies, especially in renewable sources, such as off-shore wind and solar. More investment will also be required to expand energy access through greater use of technology and digitisation.

This session will address the key challenges associated with the rapid transition taking place in the oil and gas industry including the broader financial issues that will be faced in the next decades.