CANCELLED S&E: Distinguished Lecturer Jeffrey Jeter - Environmental Due Diligence for International Finance of Oil and Gas Projects

Speaker Jeffrey L. Jeter
Senior Environmental Advisor European Bank for Reconstruction and Development     Due to the issues with the volcanic ash in Europe, as of April 18th, we can not obtain flights for Jeff Jeter to travel to the US.  All of the flights to the US have been cancelled for the forseable future.  Unfortunately, we are going ...

Senior Environmental Advisor European Bank for Reconstruction and Development


 


 



Due to the issues with the volcanic ash in Europe, as of April 18th, we can not obtain flights for Jeff Jeter to travel to the USAll of the flights to the US have been cancelled for the forseable futureUnfortunately, we are going to have to cancel his lectures for this tour.  Since we are so late in the lecture season, we will not be able to reschedule this lecturer through SPE.


Jeffrey L. Jeter is a geologist and senior environmental advisor for the European Bank for Reconstruction and Development (EBRD), and is responsible for the environmental due diligence for all major oil and gas projects at the bank.  In this capacity, he has recently been involved on the detailed review of the British Petroleum led ACG oil development and associated Baku-Tbilisi-Ceyhan export pipeline, as well as the Shell led Sakhalin Energy Investment Company Sakhalin II project (including offshore oil and gas production, 800 km of onshore pipelines, LNG plant, and oil export terminal) in far-eastern Russia. Before joining the EBRD, Jeter worked for the international environmental consulting firm Dames & Moore for more than 17 years, and ultimately was Vice President of CIS Operations. While with Dames & Moore, he was involved in and led teams for numerous environmental impact assessments, site selection studies, and geological hazard analyses for oil fields, pipelines, and other critical facilities.

Full Description

Development of large scale oil and gas projects is complex and expensive, with recent projects running into the tens of billions of US Dollars. Cash flow is critical on these projects, as once construction begins expenditure reaches a maximum and stays at or near this point for several years before being reduced to a somewhat steady state at a much lower rate for operations period. Income streams, however, do not begin until several years after maximum expenditure, and therefore large amounts of debt are carried for several years. If external financing is factored in to the cash flow model for these projects, it is essential that such financing is secured within the time frame allocated in the model; otherwise, project shareholders will have additional unanticipated cash calls to fund development of the project.

The objective of this presentation is to explain the requirements and process of environmental due diligence implemented by the European Bank for Reconstruction and Development and similar public and commercial financial institutions (including numerous "Equator Principle" banks) and to share the lessons learned through the environmental due diligence on two recent projects, the Baku-Tbilisi-Ceyhan pipeline and the Sakhalin Energy Investment Company Sakhalin II project. Such an understanding can help avoid delays in securing future project financing.

Organizer Trey Shaffer