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Top tiers drill down financing deal

Top tiers drill down financing deal

Allens and Herbert Smith Freehills have acted on the financing arrangement for the development of an oil field in the Philippines.

Firms:Allens (Galoc Production Company); Herbert Smith Freehills (BNP Paribas)

Deal:The financing arrangement for the second phase of development at the Galoc oil field in the Philippines

Area:Project finance

Value:$US37.4 million

Key players:Perth-based partner Ben Farnsworth (pictured) led the Allens team. He worked alongside partner Anthony Patten, overseas practitioner Jamie Donnelly and senior associate Jessica Ham

Deal significance: The Galoc oil field commenced production in October 2008. Phase two of the development comprises the drilling and completion of two new production wells and the installation and connection of the necessary subsea production facility. The financing arrangements for this phase involved the provision of a $US37.4 million term loan to GPC to fund their share of the development costs.

The loan was provided by BNP Paribas and has a term of three years, with principal repayments commencing in early 2014.

Lead Allens partner Ben Farnsworth said Allens advised GPC on the terms of the finance documentation, including the loan agreement and the security documentation.

He added: “The debt financing is an essential part of our client's funding strategy for this significant project and we were pleased to support them on this major deal.”

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