LAWFUEL – Herbert Smith’s market-leading reserve-based lending practice has advised Société Générale as Mandated Lead Arranger of a $550 million credit facility to Calgary-based oil and gas company Niko Resources, which achieved financial close on 12 December.
The senior secured facility will go towards financing the development of a large oil and gas field off the east coast of India and operated by Reliance, called the D6 block. The area contains a world-class gas field, which was the largest gas discovery in the world in 2002. When the field comes on stream it will double India’s domestic gas production.
Other lenders to the independent oil and gas exploration and production company include Aozora Bank, BNP Paribas, CIC, Fortis, ICICI, KBC, Natixis, RBS, Royal Bank of Canada, Scotiabank, SMBC, State Bank of India and WestLB.
Finance partner Adrian Cheng led the team, assisted by Wanda Tomaszek, Katie Gleeson, Martin Wallace and David Mogford.
Adrian commented:
“The development of the D6 block will greatly expand India’s gas production at a time when the country’s economy and energy needs are growing at a terrific rate. We are delighted to be involved in such a prestigious project.”
Blakes advised Société Générale on Canadian law, J Sagar Associates on Indian law, Appleby advised on Bermudan law, Maples and Calder advised on Cayman law and Dr Kamal Hossain & Associates advised on Bangladesh law. Gowling Lafleur Henderson advised the borrower.
