SPE Upstream Finance and Investments Conference 29 Oct 2019 Leonardo Royal Hotel London St Paul’s London, England, UK

Agenda

Tuesday, October 29

08:00 - 08:50
08:50 - 09:00
09:00 - 09:10
Welcome from the Co-Chairs Wren Meeting Room (Level -2)
Speaker(s) Adam Borushek, RISC Advisory; Basak Kurtoglu, Quantum Energy Partners
09:10 - 09:30
Keynote Address: Funding Sustainable Growth in a Time of Transition: Fear and Greed in Financial Markets Wren Meeting Room (Level -2)
Speaker(s) Alistair Stobie, Hurricane Energy

The ownership in the North Sea is changing hands. The finance for this transition has predominantly not come from the public markets which are more concerned by the transition to a net zero carbon world. Hurricane’s 2017 capital raise to fund its Lancaster Early Production System is the exception which proves the rule.

Yet these are all long lived assets the ownership of which doesn’t sit naturally in private hands. Can we expect to see a return to the days when E&P company valuations were predominantly driven by greed? Or is fear set to remain the driving force.

 

Speaker(s):

Alistair Stobie
Chief Financial Officer
Hurricane Energy

09:30 - 11:00
Session 1: M&A&D Trends – The Current and Changing Investment Climate Wren Meeting Room (Level -2)
Session Chairpersons Manoj Devashish, Citigroup; Oguz Gurbuz, Scotiabank
Speaker(s) Jonathan Roger, Siccar Point Energy; Shreyas Bordia, Citigroup; Stephen Edwards, Tailwind Energy

Since the oil price collapse in 2014, E&P investors have been keenly focused on returns, capital outlay, cost reduction and scale. Majors and IOCs are under pressure to rationalise their asset portfolios to develop new reserves and infrastructure in a more disciplined and cost-efficient manner. New capital is preferentially flowing to value driven players that are gaining scale, reducing costs, and generating positive free cash flows from the unwanted assets of Majors and IOCs. With the narrowing bid/ask spread and relatively stable commodity prices, upstream M&A&D market is highly active across the globe. Transactions are becoming structurally more complex and tailored to address specific issues related to the asset maturity and the financing requirements of the buyers.

 

The session will focus on the current M&A&D trends with valuable perspectives from the recent transactions.

Speaker(s):

Jonathan Roger
CEO
Siccar Point Energy

Shreyas Bordia
Managing Director
Citigroup

Stephen Edwards
CEO
Tailwind Energy

11:00 - 11:30
11:30 - 13:00
Session 2: Sustainability and Investments in Energy Development Wren Meeting Room (Level -2)
Session Chairpersons Adam Borushek, RISC Advisory; Alison Isherwood, AJ Isherwood Consulting
Speaker(s) Richard Dyson, io consulting; Chris Hindle, Critical Resource; Ian Hunter, OGCI Clean Gas Project, BP

Since the UN Sustainable Development Goals were set in 2015, and the Paris Agreement in 2016, there has been considerably more focus on Energy Transition and the role oil and gas needs to play in delivering these goals, in particular commitments on Climate Change. This session will cover the changing expectations of investors and other stakeholders and the likely interplay between oil and gas, renewables and carbon capture going forward. It will also discuss the enabling technologies, financial structuring and governance required to make progress.  It will touch on what projects are already out there and what the future trends are likely to be. 

Speaker(s):

Richard Dyson
CEO
io consulting

Chris Hindle
Head of Energy
Critical Resource

Ian Hunter
Commercial Manager
OGCI Clean Gas Project, BP

13:00 - 14:00
14:00 - 15:30
Session 3: The New Vanguard of Privately Financed E&P Companies Wren Meeting Room (Level -2)
Session Chairpersons Jim Bradly, RPS Energy; Steve Griffiths, ERCE
Speaker(s) David Gallagher, Mercuria; Roy Kelly, Kerogen Capital; Peter Krempin, Terraoil Swiss; Khash Mohajerani, Blue Water Energy

The 2008 financial crisis, followed by the 2014 oil-price downturn, resulted in a funding gap for many independent E&P companies, as banks reduced lending portfolio risk and re-capitalised to meet new banking regulations.  Over the same period, the strategies of many major E&P companies evolved, with several aiming to exit mature basins, opening the way for smaller companies. This enabled a new wave of private equity portfolio companies and other vehicles backed by non-traditional investments to enter the industry.

The panel will cover related issues, including; the rise of private finance in E&P, how this fits with typical asset life-cycles, how private finance differs from more traditional equity, bond, or reserves-based lending, and encourage audience discussion on what the future holds.

Speaker(s):

Roy Kelly
Partner
Kerogen Capital

Khash Mohajerani
Director
Blue Water Energy

Peter Krempin
CEO
Terraoil Swiss

David Gallagher
Mercuria

15:30 - 16:00
16:00 - 17:30
Session 4: Name of the Game: Capital Efficiency and Technology Wren Meeting Room (Level -2)
Session Chairpersons Willem Bloem, Bloem Consultants; Ramin Lakani, Muse, Stancil & Co.; Darcy Spady, Independent Director
Speaker(s) Jonathan Carpenter, Petrofac; Glenn Corr, EnQuest; Justin Lowe, PA Consulting; Emily Taylor, Oil & Gas UK

This session will focus on capital efficiency: how the upstream industry is saving costs and improving margins for example, through enhanced developments, improved operations or organisational performance.  With many mature assets as well as development prospects having changed ownership in recent years, technology is being deployed to deliver improvements in capital efficiency. So how have the new operators used technology and management practices to increase their asset value? Are there game-changing technologies that could make a difference in the coming years?  Speakers will share field examples and case studies with the audience as well as provide a view on possible future developments.

Speaker(s):

Jonathan Carpenter
Head of Strategy
Petrofac

Glenn Corr
Director Growth Assets
EnQuest

Justin Lowe
Digital and Cyber Security Expert
PA Consulting

Emily Taylor
Oil & Gas UK

17:30 - 18:30