GE Kicks Off North Sea O&G Development Lending Program
Launching a North Sea oil and gas development lending program, GE Energy Financial Services, a unit of GE, joined an existing group of financial institutions in a loan facility for Sterling Resources. Of the GBP 105 million senior secured loan, GE Energy Financial Services has committed GBP 26.1 million.
The Sterling transaction is GE Energy Financial Services' first development financing in the North Sea, complementing the existing focus of its oil and gas team. Since 1991, GE Energy Financial Services' Oil and Gas team has provided more than $4.5 billion in partnership equity and debt to independent private and public oil and gas operators in the United States. The oil and gas team is active in all major onshore basins and in the Gulf of Mexico.
Sterling Resources is an international oil and gas company with a range of exploration, appraisal and development assets both offshore and onshore. The senior secured loan will allow Sterling Resources to execute Phase 1 development of the Breagh gas field in the UK Southern North Sea. Phase 1 development comprises construction of a platform on the western side of the field from which 10 wells will be drilled, a 100-kilometer 20-inch gas export pipeline to Teesside together with an associated smaller pipeline and cable, an onshore pipeline and modifications to the Teesside Gas Processing Plant. A second phase is under consideration.
GE Energy Financial Services joined global financial institutions that had signed the loan facility agreement in July: Société Générale Corporate & Investment Banking (acting as Sole Bookrunner, Mandated Lead Arranger and Technical Bank), BNP-Paribas (acting as Mandated Lead Arranger and Facility Agent) and Commonwealth Bank of Australia (acting as Mandated Lead Arranger).