Herbert Smith taps into gas financing

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oil and gas Herbert Smith

Herbert Smith’s reserve-based lending practice advised Société Générale on the arrangement of a US$550 million credit facility for Calgary-based oil and gas company Niko Resources.

The facility will go towards financing the development of the D6 block, a large oil and gas field operated by Reliance Industries off the east coast of India.

Also advising Société Générale was J Sagar Associates on Indian law, Blake Cassels & Graydon on Canadian law, Appleby on Bermudan law, Maples and Calder on Cayman law and Dr Kamal Hossain & Associates on Bangladesh law. Gowling Lafleur Henderson advised the borrower.

The D6 block was the world’s largest natural gas find of 2002. When it comes on stream, it has the potential to double India’s domestic gas production.

Finance partner Adrian Cheng, who led the Herbert Smith team, said: “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.”