RBS chips in as Aberdeen-based oil firm secures financial packages worth £300m

Royal Bank of Scotland has contributed to nearly £300 million worth of financial packages for Aberdeen-based Faroe Petroleum.

The funding will be used by the oil firm to further its Norwegian Continental Shelf assets.

The funding is being provided by 10 banks; BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, SEB, SR-Bank, Wells Fargo, and Edinburgh-based RBS.

Split between two finance packages, the first £200 million Reserve Base Lending Facility will be used to finance assets and approved capital expenditure, operating costs and acquisitions.

The second £92.5m Norway Exploration Financing Facility will cover exploration and appraisal costs on the Shelf.

Graham Stewart, Chief Executive of Faroe Petroleum, said: “We are very pleased to have concluded this financing exercise, and to have received such strong support from both our existing bank syndicate and new lenders. The new facilities provide us with substantial funding to support the continuing growth of the Group and the financing of our development assets.”