Ashurst advised EnQuest Plc on the execution of an $80 million crude oil prepayment transaction in respect of certain of its North Sea assets and a $37.25 million refinancing for its Tanjong Baram project in Malaysia, as part of EnQuest’s programme of liquidity improvement measures.
The $80 million crude prepayment entered into with Mercuria Energy Trading SA involves repayment in equal monthly instalments over 18 months, through the delivery of an aggregate of approximately 1.8 mmbbls of oil. EnQuest will receive the average Brent price over each month subject to a floor of $45 per barrel and a cap of approximately $64 per barrel.
The $37.25 million Tanjong Baram financing entered into with Castleton Commodities Merchant Asia Co. Pte. Ltd is intended to replace the existing $11.35 million financing with the Development Bank of Singapore.
Both transactions are subject to certain conditions precedent including regulatory and lender approvals (where applicable).
The Ashurst team was led by oil and gas financing partner Huw Thomas (picture), assisted by partners Julia Derrick and Paul Miller, counsel Kerion Ball, senior associates Lindsey Bouchara, Grace Rackham and Alex Bartho, and associates Zeina Talhouni, Ari Garas, Shayaan Zaraq Bari and Josh Ludlow-Eyre.
Involved fees earner: Huw Thomas – Ashurst; Alex Bartho – Ashurst; Zeina Talhouni – Ashurst; Ari Garas – Ashurst; Julia Derrick – Ashurst; Lindsey Bouchara – Ashurst; Grace Rackham – Ashurst; Paul Miller – Ashurst; Kerion Ball – Ashurst; Shayaan Zaraq Bari – Ashurst; Josh Ludlow – Ashurst;
Law Firms: Ashurst;
Clients: EnQuest PLC;