Banks support Siccar Point with extended debt facility ahead of ‘exciting’ 2019

Siccar Point Energy, a North Sea-focused oil and gas player, has signed an agreement with its existing syndicate of banks to increase and extend its existing Reserves Based Lending facility limit from $600 million to $800 million. Availability under the RBL has also increased to over $700 million.

Apart from the increase of the limit, Siccar, one of the new kids on the North Sea block(s), has negotiated for the final maturity to be extended from 2023 to 2025, restoring original seven-year maturity.

Siccar Point Energy on Thursday said it had increased the ability to issue additional subordinated debt, adding that all Siccar Point Energy’s existing banks participated in the above-mentioned increase.

The banks in question are DNB (Co-Technical), ING (Co-Technical), Natixis (Agent), ABN Amro, Barclays, BNP, CACIB, Citi, Commonwealth Bank of Australia, Nedbank and NIBC. Siccar Point Energy was advised by Rothschild & Co and Ashurst.

Siccar Point Energy CEO Jonathan Roger said: “The ongoing support of such a strong bank group positions Siccar Point extremely well financially to deliver our forward plans. Next year is shaping up to be another exciting chapter for the company with first production from the Mariner field, our two high impact Blackrock and Lyon exploration wells, and of course, progressing the Cambo development towards project sanction following the highly successful well test earlier this year.”

Siccar Point Energy recently awarded Crondall Energy a frame agreement to assist with the identification and evaluation of FPSO options for the development and pre-FEED technical assurance of the subsea design, for Siccar’s Cambo field, in the West of Shetland.

The Cambo Field is located 125 km north-west of the Shetland Islands and lies 30 km southwest of Rosebank and 50 km north of Schiehallion. The field was discovered in 2002 and has five wells drilled into the structure. Siccar Point acquired a 100% operated interest in the field from the takeover of OMV (U.K.) in January 2017 and brought Shell UK in as a partner in May 2018.

Siccar Point Energy recently celebrated a successful well test on the Cambo field, with better than anticipated results. The well, drilled using the Seadrill-owned semi-submersible drilling rig West Hercules, will now also be incorporated into the field development plan and has been suspended for use as a future development.


Offshore Energy Today Staff

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