Financing Oil & Gas Projects

Upcoming Course

Oct 24

Financing Oil & Gas Projects

Tuesday October 24th 9:00 am to 12:30 pm BST

This course has been designed to introduce participants with little or no prior knowledge of oil & gas projects to the fundamental requirements for raising debt for projects throughout the oil & gas value chain.

Participants will learn the key differences between upstream (exploration & production), midstream (pipelines & storage – including LNG), and downstream (refining & petrochemicals), together with the different debt structures that have been developed to fund projects across the value chain.   Subsequently, they will be guided through the lenders’ approach to analysing the risks that are specific to oil & gas projects, as well as understanding the various mitigation strategies available.

The half-day course (3 ½ hours), which is delivered by live webinar is led by Ian Cogswell, who shares his knowledge gained from over 25 years’ experience leading and advising on project finance transactions, specialising in the natural resources sector, and who has recent experience in the financing oil & gas projects.

Course Overview

Fundamentals of Upstream Financing

  • Brief history of the oil & gas industry
  • The hydrocarbon value chain
  • The five elements of petroleum accumulation
  • Estimating ‘Resources’ and ‘Reserves’
  • Reserve Based Lending
  • Borrowing Bases and Debt Sizing

Fundamentals of Midstream Financing

  • Natural Gas Liquefaction, Transportation & Regasification
  • Structuring an LNG Project
  • Pipelines & Storage Terminals
  • Capacity & Throughput
  • Debt Sizing Methodologies

Fundamentals of Downstream Financing

  • Crude oil refining
  • The Nelson Index
  • Refining margins and the ‘crack spread’
  • Petrochemical processing
  • Naphtha and ethane cracking
  • Debt sizing

 Risk Identification & Mitigation

  • Sponsor / Developer Risk
  • Construction & Technology Risk
  • Feedstock Supply Risk
  • Reserve Risk
  • Market Risk
  • Regulatory Risk
  • Environmental, Social & Governance Risk