Loan facilities for Faroe Petroleum

Watson Farley & Williams (“WFW”) has advised a syndicate of banks consisting of BNP Paribas, BMO, Commonwealth Bank of Australia, Danske Bank, DnB Bank, ING, The Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo, on two major banking facilities in favour of Faroe Petroleum to finance its expansion.

The two facilities are:

US$250 million (circa £198.5m) Reserve Base Lending Facility. This facility is available to finance the relevant assets and approved capital expenditure, operating costs and acquisitions. In addition to the committed US$250m, a further US$100m is available on an uncommitted “accordion” basis. The facility has a 7-year final maturity (December 2023), with an amortising repayment profile from January 2020; and

NOK 1 billion (circa £93.5m) Norway Exploration Financing Facility. This facility has the capability to finance the majority of Faroe’s exploration and appraisal costs on the Norwegian Continental Shelf. In addition to the committed NOK 1 billion, a further NOK 0.5 billion is available on an uncommitted “accordion” basis. The availability period of the facility extends to 31 December 2019.

Faroe Petroleum is an independent oil and gas company focussing principally on exploration, appraisal and production opportunities in Norway and the UK.

The WFW London commodities and upstream finance team advising the syndicate was led by Partner Joe Levin (Picture), assisted by Associate Nehal Khan and Trainee Matthew Pawlak. Senior Associate Claire Miles provided tax advice. Wikborg Rein, led by Senior Lawyer Vidar Lohre, acted as the lenders’ Norwegian counsel. Pinsent Masons advised Faroe Petroleum.

Involved fees earner: Vidar Løhre – Wikborg Rein; Joe Levin – Watson Farley & Williams; Nehal Khan – Watson Farley & Williams; Claire Miles – Watson Farley & Williams;

Law Firms: Wikborg Rein; Watson Farley & Williams;

Clients: BNP Paribas; ING Bank; RBS; Wells Fargo; Commonwealth Bank of Australia; BMO Financial Group; SEB AG; Danske Bank; DNB Bank ASA; SR Bank ASA;

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