Post-conference Analysis - Euromoney Seminars Amsterdam 2015 po… · OGF AMSTERDAM THE CONFERENCE FOR THE OFFSHORE OIL & GAS ASSET FINANCE NETWORK Post-conference Analysis ... the

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18th-20th March 2015 • Amsterdam Marriott Hotel

Post-conference Analysis

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OGF AMSTERDAM 2015: THE CONFERENCE FOR THE OFFSHORE OIL & GAS ASSET FINANCE NETWORK

Post-conference AnalysisWill Robson, Conference Editorial Manager, summarizes OGF Amsterdam 2015

OGFAMSTERDAM INDICATIVE OF REALISTIC BUT RESOLUTE INDUSTRY

Positioned at the start of a year that promises much uncertainty and challenging times, the OGFAmsterdam launch event was always going to provide an interesting insight on industry sentiment and it did not disappoint.

For some the conference began on the Wednesday morning with a trip to one of IHC’s shipyards. IHC is currently building 10 pipe-lay vessels destined for work with Petrobras. The visit provided an opportunity to understand the complex processes and careful, precise planning involved in constructing such a vast sophisticated vessel; in many ways, this was a fitting metaphor for the discussions that would follow over the subsequent days.

The conference itself was kicked off by Rystad Energy’s Jarand Rystad who sought to explain the past, present and future of the oil price and the impact on the industry. High shale production, weaker than anticipated global demand and the impact of geopolitics combined together to create a “triple shock” and trigger the collapse of the price of the black stuff. Hand-in-hand with this overview came the welcome revelation that the market is on course to follow a U-shaped recovery and will start to trend up around the third quarter of 2015.

As the Global Heads of Offshore Finance took to the stage to deliver their verdicts on the industry, the mood was jovial but the message serious. The banks are pulling back as the risks increase and only the most secure names, with strong liquidity and solid contract backlogs can feel confident. The warning was that cash is king and

that companies should focus early on maintaining strong liquidity, following the likes of Seadrill by suspending dividends. Oil price is not everything and even if it does recover, the O&G companies’ appetite for expenditure will most likely not increase in step.

With the risk averse banks pulling back and many of the less secure companies in great need of finance, the desire to understand the options available is a common theme throughout much of the industry and this was reflected over the conference. The bond market may have shut its doors too late as it faces up to the prospect of billions of dollars’ worth of bonds maturing from 2017. Other types of public fund and private equity have interest in the sector and may well be a realistic source of finance for some of the stronger companies; but, in somewhat of an echo of the bankers’ comments – the risks are increasing and people are proceeding with caution.

Conversation at the event did also follow a regional pattern. Brazil, previously considered one of the industry’s most long-term bankable cash-cows, now seemingly flounders in the fallout of ‘Operation Carwash’. Nearby, Mexico, insufficiently understood by much of the global offshore community is feeling the pain of worldwide E&P cuts. In Amsterdam, the enthusiasm for moving into the Mexican market and the opportunities on offer was clear; however, the fear of corruption remains a fundamental concern. Among financiers, all are keen to avoid being touched by a re-run of a Petrobras scandal. It seems it is still too soon to discuss this in detail.

As bleak as the outlook may look for some, the atmosphere was not all doom and gloom. The time is ripe for M&A and well-positioned companies should look to take advantage of depressed asset values. As was observed in one panel, M&A is also not a one-way street; for several companies out there at the moment, being acquired is a legitimate and sensible consideration that ought to be taken. Furthermore, a period of M&A alongside some unfortunate and inevitable casualties will lead to a vital period of consolidation across the industry, restoring the supply/demand balance to manageable levels.

Despite the current pains, the industry also maintains an unblinking eye on the future. The conference was closed by a discussion of FLNG and whether the FPSO financing template can be used for this technology as it increasingly moves to the industry fore. Discussion generated during the session was in itself proof that financiers and asset owners alike consider this technology a genuine possibility. Such a response must surely be a positive sign for the industry and an indicator that there will always be finance available for the right project.

As the curtain fell on OGFGlobal’s launch event, OGFAmsterdam, there was time for reflection on the outlook of the industry and the inevitable challenges and opportunities. The mantra referenced by Pareto’s Wilhelm Magelssen neatly encapsulated the lesson of best practice for the coming months and years: “raise money when you can, not when you must – but when you must, raise it any way you can.”



Attendee analysisBY COMPANY TYPE

Bank/financial institutions

Operators and E&P companies

Law firms

ECAs

Consulting

Shipyards

Private equity

Neth

erla

nds

UK

Norw

ay

Oth

er

USA

Fran

ce

Germ

any

Sing

apor

e

Finla

nd

Mon

aco

Braz

il

Director

CFO/Treasurer

VP/SVP

Partner

Managing Director

Head/Global Head

Senior Associate/Associate

General Manager

Analyst

Other senior roles

BY COUNTRY BY JOB TITLE

29%19%

26%16%

15%

14%

10%

12%

5%

9%

4% 4% 4%

8%

6%

3%

2%

3%

12%

2% 2%

38%

28%

13%

7%

5%3% 3%



Attending companies• ABN AMRO• AlixPartners• Allseas• American Bureau of

Shipping• Atlantica Tender Drilling• Atradius• Basch & Rameh• Bluewater Energy Services• BNP Paribas• Carlyle• Centerbridge Partners

Europe• Ceona• Citigroup• Clarkson Research

Services• Clarksons Financial

Services• Clifford Capital• CMS Cameron McKenna

• Crédit Agricole Corporate and Investment Bank

• Credit Industriel et Commercial

• Crondall Energy• Curtis Davis Garrard• Daemon Investimentos• Damen Shipyards Group• Danish Ship Finance• Debtwire• DeepOcean• Delcredere Ducroire• Deutsche Bank• DNB Bank• DOF• DVB• Eksportkreditt Norge• EMAS• Export Credit Norway• Fearnley Project Finance• Ferncliff

• Finnvera• First Reserve International• Fred Olsen Energy• Frigstad Deepwater• Frigstad Offshore• Fugro• GIEK• GranEnergia• Grup Servicii Petroliere• GSP Logistic /GSP

Shipyard• Heerema Marine

Contractors• Holman Fenwick Willan• HSBC• Huisman Equipment• IHC Merwede• IHS Maritime & Trade• ING Offshore• Investec Bank

• IRI/The Marshall Islands Registry

• Itaú BBA• JOSCO• Kexim• KfW IPEX Bank• Kluge Advokatfirma• KS Drilling• K-Sure• Latham & Watkins• Linklaters• Loyens & Loeff• Marcos y Asociados• Marubeni Corporation• Natixis• NIBC Bank• Noble Energy New

Ventures• NORD/LB• Nordea Bank

• Northern Fund Management Ireland

• Norton Rose Fulbright• Oaktree Capital

Management• Oceanteam Shipping• Odebrecht Óleo e Gás• Odfjell Drilling• Offshore Merchant

Partners• Olympic Shipping• Oranje-Nassau Energie• Pacific Drilling• Pareto Project Finance• Petrobras Oil & Gas• Queiroz Galvão• Quest Offshore• Rabobank• Rystad Energy• SBM Offshore• Seadrill Management

• Seafox• Seajacks• Seaway Heavy Lifting• Sevan Marine• SGCIB• SHL Offshore Contractors• Siem Offshore• SMBC• SMBCE• Subsea 7• Topaz Energy & Marine• Trade Finance Magazine• Tschudi Offshore &

Towage• UniCredit Bank AG• Van Es Holding• Vroon Offshore Services• Wartsila Corporation• Watson Farley & Williams• Wells Fargo• White & Case



Attendee commentsPeter van Rossum, CFO, SBM Offshore

“I hope this event marks the start of a very useful annual O&G financing event”

Hervé Lalli, Group Corporate and Project Finance Director, SBM Offshore

“This is the kind of event which will find its place in the annual schedule for O&G very rapidly”

Solveig Froland, Senior Vice President Shipping & Offshore, GIEK

“Relevant discussions, useful information, excellent venue”

Carlos G.E. Rameh, Partner, Basch & Rameh LLP

“Highly educational and very well attended by all sectors of the market”

Patrick Caron-Delion, Managing Director, Shipping & Marine Finance, Investec

“This event was exceptionally well organised, with an excellent interactive online agenda”

Dmitri Mikhno, Director, Clarksons Financial Services

“Excellent conference that allows to meet all important contacts at the event”

Luis Miguel Labardini, Partner, Marcos y Asociados

“A very focused well rounded opportunity to understand industry trends”

Melvin Gwee, Vice President, Natrural, ING Offshore

“Good networking, strong panel speakers”

Christian Behnke, Senior Relationship Manager, Danish Ship Finance

“A very well organised event – perhaps the best I have ever attended”

Jan Willem van Helden, Corporate Treasurer, Heerema Marina Contractors

“The event covers the market in a day”

Corrado Fanfani, General Manager, Marine Lifecycle Solutions, Wartsila Corporation

“Appreciated greatly the down to earth climate of this event and relaxed thus open dialogue during panels & discussions”

Stephan Somitsch, Director, Nord/LB

“Good mix of companies, banks and some lawyers”

Koos Frowein, CFO, Bluewater Energy Services BV

“Good event to meet the key players in offshore finance to get updated and share experiences”



OGF Amsterdam 2015 in pictures

We are looking forward to seeing you atOGFAmsterdam 2016

www.ogfglobal.com/ogf-amsterdam-2016

Find out more about future OGFGlobal events

17-18 September 2015 • St. Regis Mexico City HotelExploring opportunities and challenges offshore Mexico

www.ogfglobal.com/ogf-mexico

November 2015 • SingaporeMaximising the potential of existing and emerging markets offshore Asia

www.ogfglobal.com/ogf-asia

November 2015 • New YorkStrategies for distressed investing and financial restructuring in offshore oil & gas

www.ogfglobal.com/ogf-private-equity

Documents

Post-conference Analysis - Euromoney Seminars Amsterdam 2015 po… · OGF AMSTERDAM THE CONFERENCE FOR THE OFFSHORE OIL & GAS ASSET FINANCE NETWORK Post-conference Analysis ... the