Reserve Based Lending

This course has been designed to introduce participants with little or no prior knowledge of reserve-based lending to the fundamental requirements for raising debt for upstream oil & gas projects.

Participants will learn the key differences between the upstream (exploration & production), midstream (pipelines & storage – including LNG), and downstream (refining & petrochemicals) oil & gas sectors, before focusing on the debt structures that have been developed to fund upstream projects.   Following an explanation of reserve estimating techniques, they will be guided through the process of establishing a borrowing base facility, understanding key lender requirements, and the impact of ESG regulation.

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 oil & gas sector, and who has recent experience in the financing projects across the oil & gas value chain.

The Oil & Gas Industry

  • Brief history of the oil & gas industry
  • Upstream
  • Midstream
  • Downstream
  • The hydrocarbon value chain

Estimating Reserves

  • Understanding the “jargon”
  • Volumetric, Materials Balance and Decline Curve analysis
  • Deterministic and probabilistic approaches
  • Resources and Reserves
  • Resource classifications:   Reserves; Contingent Resources: and Prospective Resources
  • Reserves classifications Developed; Producing; Non-Producing; and Undeveloped

Fundamentals of Reserve Based Lending

  • What is an RBL
  • Advantages and Disadvantages
  • Price Decks

Debt Sizing

  • Determining the Borrowing Base
  • Establishing Debt Capacity
  • Key Measurement Tools (ADSCR / LLCR / PLCR)
  • Control Features
  • Borrowing Base Redeterminations

ESG Considerations

  • The equator Principles
  • Lessons from other industries
  • Lenders attitude to upstream oil & gas risks