Project Finance for the International Petroleum Industry,
Edition 1
By Robert Clews

Publication Date: 04 Apr 2016
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Description

This overview of project finance for the oil and gas industry covers financial markets, sources and providers of finance, financial structures, and capital raising processes. About US$300 billion of project finance debt is raised annually across several capital intensive sectors—including oil and gas, energy, infrastructure, and mining—and the oil and gas industry represents around 30% of the global project finance market.

With over 25 year’s project finance experience in international banking and industry, author Robert Clews explores project finance techniques and their effectiveness in the petroleum industry. He highlights the petroleum industry players, risks, economics, and commercial/legal arrangements. With petroleum industry projects representing amongst the largest industrial activities in the world, this book ties together concepts and tools through real examples and aims to ensure that project finance will continue to play a central role in bringing together investors and lenders to finance these ventures.

Key Features

  • Combines the theory and practice of raising long-term funding for capital intensive projects with insights about the appeal of project finance to the international oil and gas industry
  • Includes case studies and examples covering projects in the Arctic, East Africa, Latin America, North America, and Australia
  • Emphasizes the full downstream value chain of the industry instead of limiting itself to upstream and pipeline project financing
  • Highlights petroleum industry players, risks, economics, and commercial and legal arrangements
About the author
By Robert Clews, Head of Oil, Gas, and Petrochemicals, Sumitomo Mitsui Banking Corporation
Table of Contents
  • Introduction
  • Part I: Introduction to Project Finance
    • Introduction
      • Chapter 1: The Characteristics of Project Finance
        • Abstract
        • 1.1. Introduction
        • 1.2. Raising finance for large projects
        • 1.3. Using project finance to raise capital
        • 1.4. Risk analysis and risk mitigation
        • 1.5. Project economics, capital structure and debt capacity
        • 1.6. The Project finance process
      • Chapter 2: Project Finance Structures and Techniques
        • Abstract
        • 2.1. Introduction
        • 2.2. Project finance structures
        • 2.3. Project finance tools and techniques
        • 2.4. Security structures, sponsor support and other features
      • Chapter 3: Sources of Finance and the Global Project Finance Markets
        • Abstract
        • 3.1. Introduction
        • 3.2. Sources of equity
        • 3.3. Sources of project finance debt
        • 3.4. The Global project finance market
      • Chapter 4: Commercial Banks and Syndicated Lending
        • Abstract
        • 4.1. Introduction
        • 4.2. The Role of commercial banks in project finance
        • 4.3. Term loans and related financing
        • 4.4. Syndicated lending
        • 4.5. Loans market practice
    • Part II: The Petroleum Industry – Commercial Risks and Contracts
      • Introduction
        • Chapter 5: Fundamentals of the Petroleum Industry
          • Abstract
          • 5.1. Introduction
          • 5.2. The Business of petroleum
          • 5.3. The Industry value chain
          • 5.4. Industry structure, markets and economics
        • Chapter 6: Upstream Oil and Gas
          • Abstract
          • 6.1. Introduction
          • 6.2. Fundamentals of upstream oil and gas
          • 6.3. Upstream project risks
          • 6.4. Commercial structures and upstream contracts
        • Chapter 7: Petroleum Refining
          • Abstract
          • 7.1. Introduction
          • 7.2. The fundamentals of petroleum refining
          • 7.3. Refinery project risks
          • 7.4. Commercial structure and contracts
        • Chapter 8: Pipelines, Storage and Other Infrastructure
          • Abstract
          • 8.1. Introduction
          • 8.2. Fundamentals of pipelines and storage
          • 8.3. Pipelines, storage and infrastructure risks
          • 8.4. Commercial structures and contracts
          • 8.5. Oil and gas infrastructure tariffs and economics
        • Chapter 9: Petroleum Shipping and the Offshore Industry
          • Abstract
          • 9.1. Introduction
          • 9.2. Fundamentals of the shipping and offshore industries
          • 9.3. Shipping and offshore risks
          • 9.4. Commercial structures and contracts
          • 9.5. Shipping and offshore economics and finance
        • Chapter 10: Natural Gas and LNG
          • Abstract
          • 10.1. Introduction
          • 10.2. Fundamentals of the industry – the ‘natural gas chain’
          • 10.3. Risks in the natural gas industry
          • 10.4. Commercial structures and contracts
        • Chapter 11: The Petrochemicals Industry
          • Abstract
          • 11.1. Introduction
          • 11.2. Fundamentals of the petrochemicals industry
          • 11.3. Risks in the petrochemicals industry
          • 11.4. Commercial structures and contracts
        • Chapter 12: Project Development in the Petroleum Industry
          • Abstract
          • 12.1. Introduction
          • 12.2. Oil and gas project development
          • 12.3. The Project development process
          • 12.4. Contractors and contract terms
          • 12.5. Economics of project development
        • Chapter 13: Political and Environmental Risks, Tax and Insurance
          • Abstract
          • 13.1. Introduction
          • 13.2. Political and country risks
          • 13.3. Environmental risks
          • 13.4. Taxation and the petroleum industry
          • 13.5. Insurance
          • 13.6. Unforeseen events and force majeure
      • Part III: Project Finance Applied to the Petroleum Industry
        • Introduction
          • Chapter 14: The Role of Project Finance in the Petroleum Industry
            • Abstract
            • 14.1. Introduction
            • 14.2. Investment requirements of the petroleum industry
            • 14.3. Conventional sources of funding
            • 14.4. The role of project finance
            • 14.5. Hybrid finance structures for the petroleum industry
          • Chapter 15: Risk Analysis and Bankability for Oil and Gas Projects
            • Abstract
            • 15.1. Introduction
            • 15.2. Lender analysis of oil and gas project risks
            • 15.3. Sponsor risks in oil and gas project finance
            • 15.4. Lender approach to project risks
            • 15.5. Risk mitigation techniques and structures
          • Chapter 16: Project Economics and Cashflow Forecasting
            • Abstract
            • 16.1. Introduction
            • 16.2. The Role of cashflow forecasting and modelling
            • 16.3. Building the project forecasts
            • 16.4. Debt routines and model outputs
            • 16.5. Debt optimisation and the base case
            • 16.6. Sensitivity analysis and debt break-even
          • Chapter 17: Finance Structures and Terms
            • Abstract
            • 17.1. Introduction
            • 17.2. Overview of financial structuring
            • 17.3. Capital structure and the composition of debt
            • 17.4. Funding, repayment and maturity of debt
            • 17.5. Cost of funds
            • 17.6. Lender controls
            • 17.7. Sponsor support and other forms of credit enhancement
            • 17.8. Security
          • Chapter 18: Finance Structures for Upstream, Midstream and Downstream Projects
            • Abstract
            • 18.1. Introduction
            • 18.2. Upstream project finance structures
            • 18.3. Midstream project finance structures
            • 18.4. Downstream project finance structures
            • 18.5. Risk management and derivative contracts
          • Chapter 19: Oil and Gas Project Finance Documentation
            • Abstract
            • 19.1. Introduction
            • 19.2. Documenting the project finance transaction
            • 19.3. Lender commitments and term sheets
            • 19.4. Principal terms of the finance documents
            • 19.5. Project finance documentation processes
            • 19.6. Concluding remarks
        • Bibliography
        • Subject Index
        Book details
        ISBN: 9780128001585
        Page Count: 416
        Retail Price : £73.99
        • Gatti, Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects, 2nd ed., 9780123919465, Aug 2012, 496 pp., $89.95
        • Yescombe, Principles of Project Finance, 2nd ed., 9780123910585, Nov 2013, 370 pp., $89.95
        • Yescombe, Public-Private Partnerships, 9780750680547, Aug 2007, 368pp., $104.00
        Audience

        Graduate students working in corporate finance and business, and professionals working in the project finance industry and the international oil and gas industry