Reserve-based lending in the North Sea

Deutsche Bank’s Director of Structured Commodity Finance, Yann Ropers and EMEA Regional Head of Distribution, Boris Jaquet talk to Trade Finance TV about the appetite for reserve-based lending oil borrowing from new E&P companies based in the North Sea.

Larger utilities such as Engie have divested their assets because of a change of strategic direction towards renewables. “There has been a major reshaping of the North Sea,” says Ropers, as he explains how Norway, along with its vast sovereign wealth fund has made the region attractive to investors.

Jacquet makes the point that there is huge appetite for reserve-based lending commodity finance deal tickets, and that with these new independent oil producers, lenders have to be part of their journey – “there at the beginning”. “The deals are all oversubscribed and there is competition for mandated lead arrangement roles”.

Oil prices, he says, are stabilising, and the long-term view on oil is good. And despite all the about electric cars, oil and natural gas will remain an important component of the energy mix. “Although the proportion will go down, the overall demand rises, predicts Ropers.

For more insights, tune into Trade Finance TV, and don’t forget you can also read Ropers’ article, ‘Sunset to sunrise’ in flow here

Published on September 24, 2019

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