International law firm Freshfields Bruckhaus Deringer has advised oilfield services and engineering company Petrofac in its agreement with Bowleven, the oil exploration firm, to provide access to up to US$500 million of cash and services towards the first stage of development of the Etinde Permit gas and condensate reserve off the coast of Cameroon.
Petrofac will provide access to project management, engineering, design, procurement and construction services and training expertise to the Bowleven Group, with the investment repaid through a share of Bowleven’s production revenue. First production from Etinde Permit is currently targeted for 2016.
The Freshfields team advising on the transaction was led by London finance partner Alan Rae-Smith.
Alan Rae Smith commented, ‘This is a novel deal that leverages both capital and resources from Petrofac to enable them to support Bowleven’s exploration of the Etinde Permit. This mix of physical as well as financial support is a win for both sides and utilises extensive experience and resource at Petrofac to compliment the cash element.
‘Combining services and finance can be a good approach particularly in markets that are currently capital-poor. Given global market conditions at present I expect to see many more innovative deals of this nature over the coming months.’
Freshfields has advised Petrofac on a number of previous transactions, including the EnQuest demerger and their investment in Seven Energy.
