Masterclass in strategies and techniques for
financing the oil and gas industry in transition

10-11 May 2016, Grange City Hotel, London

The sharp drop in oil prices poses many problems for the oil and gas industry, with many companies across the sector facing ongoing financial challenges, which in turn has elevated the subject to the top of managements' agendas.

To help the industry address these issues, the UK Committee of the World Petroleum Council, with the support of the Energy Institute hosted this Expert Workshop to focus on the financing of oil and gas companies, and to explore the various sources of financing that can be utilised for mega-dollar conventional and unconventional oil and gas projects. 

Insights from financial industry experts, NOCs, IOCs and independents along with valuable legal and insurance related views were presented.

Key discussion outcomes from the UK Committee Expert Workshop 2016

Industry experts from across E&P, commodity trading, investment banking, project financing and insurance delivered insight on topics centred on financing the oil and gas industry in transition. The discussion identified eight key themes:

1. Demand for energy is rising, especially in China and India

2. Raising capital is becoming challenging

3. There is still investor appetite in the sector

4. Oil price volatility, M&A consolidation and spin-offs, and refocus on midstream and downstream were the major themes within the E&P sector in 2016

5. Significant bank liquidity is available for upstream operations despite challenging economic conditions

6. Project financing opportunities in mid and downstream operations highlight advantages such as longer tenors and ability to pass substantial risk to lenders

7. Driven by their need to preserve ratings, many companies have become conservative in their financial structure

8. Other issues raised included:

  • All industry players have cut investment due to fall in oil prices
  • Electricity consumption may have peaked in the developed countries for now but more supply is ultimately required to meet COP21 targets
  • The long-term contract prices for renewable power facilities to be commissioned by 2019 show significant decrease in the USD/MWh, leading to increased attractiveness
  • Confidence in future development of nuclear power capacities worldwide is limited
  • Corporate value and carbon value often disconnect offering opportunities to the big oil to reinvent itself
  • The capacity of the oil and gas companies to take risk will decrease in a low carbon world.

Presentations and discussion explored:

The energy challenge

  • How will the global energy system evolve?
  • How much fossil, nuclear and renewables will be required?
  • How much investment will be needed?
  • Outlook for oil and gas prices

Pushing the boundaries with financial instruments

  • Project finance and reserve based lending – strategies and key considerations
  • New thinking for multi-lateral financing
  • Debt capital markets – an attractive option?
  • Private equity – a viable option at today’s oil price?

Financing strategies – best practice and innovative thinking 

  • Financing E&P
  • Infrastructure and inventory financing
  • Insights from NOCs, IOCs and independents – what is the appetite for risk in a changing landscape?
  • Legal insight – increasing transparency and regulatory changes
  • Insurance implications
  • Capital structures, balance sheet and commodity interest rate hedging
  • Financing unconventionals

The outcomes from the workshop will be shared at the World Petroleum Congress in Istanbul, 9-13 July 2017.

This event was of particular interest to:

  • Associates and senior associates in firms with project finance transaction capability
  • Technical advisors to lenders
  • Finance directors
  • Treasury managers
  • Geoscientists, engineers, project managers
  • Risk and insurance specialists
  • Oil and gas asset managers
  • Energy bankers
  • Project finance managers
  • Legal advisers

This Expert Workshop was organised by

EI Master RGB web

Contact us
Francesca Ferrari
e: This email address is being protected from spambots. You need JavaScript enabled to view it.
t: +44 (0)20 7467 7192

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