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Reserve Based Lending

Our team of experienced finance, oil and gas, corporate, construction, real estate and tax lawyers can advise you on financing most types of energy assets, including reserve based lending (RBL), as well as working-out and restructuring RBL loans. We are involved in the structuring, drafting and negotiation of high profile transactions, ranging from upstream exploration and production (E&P), to midstream refineries, pipelines and storage infrastructure, through to portfolios of downstream retail assets.

Experienced reserve based lending lawyers

We bring our deep sector knowledge to bear together with a highly commercial approach, enabling you to achieve your commercial and strategic goals. We understand the importance of balancing between lender protections and borrowers' needs for flexibility, working collaboratively with all stakeholders to produce win-win outcomes.

Our lawyers have advised on many RBL facilities that were the ‘first-in-jurisdiction’, so as well as understanding the nuances of the US and European approaches to RBLs, we have extensive experience of emerging markets, where the inherent nature of the reserves and the jurisdiction can require the development and implementation of innovative structures.

Members of our team have a deep understanding of the financial modeling techniques used in RBL financings and can assist you in optimizing covenant packages (e.g. capex add-back), to dovetail with modeling outputs.

An experienced Reserve Based Lending legal team

We have advised on several energy transactions where RBL structures and techniques were used to monetize actual reserves in combination with inventory assets, particularly in the case of integrated oil and gas groups with both refinery/inventory and RBL assets.

Since the Q2 2014 downturn in oil prices, we have advised on a number of restructurings and refinancings of RBLs. Whether acting for borrowers, funders or purchasers of RBLs, our strategic combination of global firms enables us to advise on multi-jurisdictional cross-border restructurings.

Our outlook is as follows:

  • with global production and pricing outlook stabilizing and becoming more certain, at current pricing levels there are a number of E&P assets that appear now to justify further capex
  • funders remain highly selective as to which RBLs they will participate in, with scale and diversity seen as key
  • the potential resetting of strategic relationships with Russia will open new opportunities

Contact our Reserve Based Lending team

If you would like any further information or need advice on reserve based lending, please contact our legal team.

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