{"id":8957,"date":"2012-03-15T15:13:03","date_gmt":"2012-03-15T13:13:03","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/pfi\/"},"modified":"2012-03-15T15:13:03","modified_gmt":"2012-03-15T13:13:03","slug":"pfi","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/pfi\/","title":{"rendered":"PFI"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>By Josephine Shillito<\/p>\n<p><span><\/span><\/p>\n<p>LONDON, March 15 (PFI Energy Finance Briefing) &#8211; Major<br \/>\nEuropean oil companies are increasingly offering corporate<br \/>\nfinancing to small- and mid-cap oil producers, using the loans<br \/>\nto effectively lock up supplies of crude.<\/p>\n<p><span><\/span><\/p>\n<p>Sources say oil giants like BP, Glencore and Vitol have<br \/>\nfilled the void left by eurozone commercial banks, which have<br \/>\npulled back from lending due to the debt crisis and new capital<br \/>\nrequirements.<\/p>\n<p><span><\/span><\/p>\n<p>While advancing capital in exchange for production volumes<br \/>\nis nothing new in the energy sector, the majors are said to have<br \/>\nbecome more aggressive of late, as the civil war in Libya and<br \/>\nthe threat of a conflict over Iran have roiled the supply chain<br \/>\nand driven up prices.<\/p>\n<p><span><\/span><\/p>\n<p>Sources say the oil majors are specifically targeting light<br \/>\nsweet crude, and are coming on board early in a project&#8217;s<br \/>\ndevelopment with the smaller companies, many of which have been<br \/>\nstruggling to obtain direct lending from banks.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;What we are seeing is a change in timing. Oil majors are<br \/>\noffering capital pre-production, and sometimes even<br \/>\npre-drilling, because they have the technical expertise on board<br \/>\nto assess the exploration and production risk,&#8221; one source said.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Most importantly, a knowledge of both the physical and<br \/>\npaper markets allows them to correctly price this risk.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>One recent example was a $50m 23-month unsecured corporate<br \/>\nfacility between Nigeria-focused oil independent Afren and the<br \/>\nAzerbaijani state oil company Socar.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Josephine Shillito LONDON, March 15 (PFI Energy Finance Briefing) &#8211; Major European oil companies are increasingly offering corporate financing to small- and mid-cap oil producers, using the loans to effectively lock up supplies of crude. Sources say oil giants like BP, Glencore and Vitol have filled the void left by eurozone commercial banks, which [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-8957","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=8957"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8957\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=8957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=8957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=8957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}