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Norwegian bonds: a welcome liquidity source for E&P companies

Huw Thomas
Huw Thomas
9 January 2015 - 0 comments

Huw Thomas is a partner at Ashurst LLP and consulting editor of a forthcoming title on energy finance for Globe Law and Business.

Background

Exploration and production (E&P) companies have benefited from the hunger for yield in the Norwegian bond market over the last couple of years.  Norwegian bonds have been issued by a number of E&P companies which own assets ranging from the North Sea (Norwegian and UK) to onshore UK, Kurdistan and Southeast Asia.  Issuers have included Sterling Resources, IGas Energy, Det norske, Kris Energy, Iona Energy, Salamander Energy, Gulf Keystone and Xcite Energy.

If you have not been involved in a Norwegian bond issue, you may be curious as to what is involved and how difficult the process may be.  The answer is: not very.  In fact, for borrowers that tick the right boxes, the process can be surprisingly fast and painless. I will break it down into its simple component parts so that you can judge for yourself.