Faroe secures finance for offshore Norway E&P programs

Offshore staff

ABERDEEN, UKFaroe Petroleum has signed two banking facilities to support its growth plans offshore northwest Europe. 

A $250-million reserve base lending facility (RBL) is available to finance relevant assets and approved capex, operating costs, and acquisitions.

It replaces Faroe’s existing RBL facility and is due to mature in December 2023.

The other, NOK1-billion ($115-million) financing facility should cover the majority of Faroe’s exploration and appraisal costs offshore Norway, and runs to end-December 2019.

In addition, a further NOK0.5 billion ($57 million) is available on an uncommitted “accordion” basis.

Providers of the facilities are BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank, and Wells Fargo.

CEO Graham Stewart said: “The combination of existing cash, these new credit facilities and cash flow from the company’s significantly enhanced portfolio of producing assets, ensures that we are funded to take advantage of the material development upside in our portfolio and continue to invest in our value enhancing exploration program on the Norwegian continental shelf.”

12/22/2016

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