Ten Things Every Energy Lawyer Should Take Into Account Contributor: Olufola Wusu Esq.
The nature of the Oil and Gas industry makes it unattractive for commercial lenders to agree to finance projects embarked upon by smaller companies. Lending is even more uncommon when the project is purely exploration or import based because of the inherent risks involved in participating in such activities. Insurance is also a major issue with premiums constantly on the rise.
The risk involved, the difficulty in securing loans and never ending stream of innovation have led the oil and gas industry to evolve diverse contracts designed to mitigate risk, solve the problem of funding and cover the stream of innovation being birthed by the industry.