With banks shunning fresh investments in fossil fuel development, oil majors are now seeking funding from alternative markets to augment their operations, LEADE
Oil and gas firms have started to turn to alternative sources of funding, which are more difficult to readily compile, according to April Merleaux, research manager at environmental nonprofit Rainforest Action Network .“It’s difficult to say with confidence that there’s a new trend in the lending markets that will extend into 2023,” Merleaux told Bloomberg.
“Securitisations backed by oil and gas assets help diversify funding sources for companies that would typically access capital from more traditional sources, such as reserve based lending facilities, high-yield bond issuance or equity investment,” Fitch Ratings said in early 2020 when this type of funding was brand-new and the pandemic hadn’t crushed oil demand yet.
Banks have started to announce cuts to lending to the oil and gas industry and as of the end of last year, two prominent banks in Europe vowed to significantly cut exposure to the fossil fuels sector. Earlier in 2022, ING said it would aim to grow new financing of renewable energy by 50 per cent by year-end 2025 and would no longer provide dedicated finance to new oil and gas fields.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NUPRC shortlists 139 firms for gas flare trading - Punch NewspapersThe most widely read newspaper in Nigeria
Read more »
How Bandits, Kidnappers Killed 70 Residents In Nigerian Capital, Abuja In 2022 Alone – Report | Sahara ReportersAbout 70 persons were killed and 194 abducted by bandits and other criminals in the Federal Capital Territory, Abuja in 2022. According to Data sourced from an indigenous intelligence outfit, Beacon Consulting, it was revealed that a total of 194 security breaches were witnessed in all the six area councils of the FCT. On December 6, 2022, seven persons including an ex-corps member and a pastor were kidnapped, while two males were killed during an attack by bandits in the Kubwa area of the FCT.
Read more »
CAMA 2020 and the end of authorised share capital regime, By Abimbola IzuWhile appreciating the constraints faced by companies and the rationale for taking what looks like an easy way out, one feels the need to examine the bigger implications posed by this statutory provision, and its implementation. One is hoping that this may trigger some discourse that may facilitate a review of the positions. The Companies […]
Read more »
How insecurity is hampering oil exploration in Niger - Daily TrustThe delay in oil exploration activities in the Bida Basin of Niger State has continued to generate concerns among citizens of the state, Daily Trust on
Read more »
Oil Player, Uju Ifejika’s Many Laurels – THISDAYLIVE
Read more »
Deregulate oil sector now, Ohuabunwa tells BuhariA former Presidential aspirant on the platform of the Peoples Democratic Party in the 2023 general elections, Sam Ohuabunwa, has lashed out at the President, Major-General Muhammadu Buhari (retd.), over his inability to enforce price control in the oil and gas sector.
Read more »