Oil & Gas
Trade Finance!
For more than 13 years Bayrock Services Ltd has been helping its clients to reduce the financial burden associated with global oil & gas trading.
Let our experts advise you on the best way of mitigating risk.
When carrying out cross-border business, importers and exporters are exposed to specific risks, such as exchange and currency risks, non-payment, damage to goods in transit and fraud, etc.
Providing the Highest Quality Services For Your Oil & Gas Project
Oil & gas trading requires exorbitant amounts of capital to invest in exploration and processing. As a result, most firms engaged in the trade of oil & gas have overly complex and specialized financial needs.
Bayrock Services Ltd has a long history representing various participants in the development and financing of capital-intensive projects throughout the world, with our industry experience.
Improve working capital management
Reduce expenses around transaction services
Leasing and Tax-Equity Financing
Improve operational efficiencies
Project loan
Leased Bank Guarantee (BG)
Oil & Gas Trade Finance Program
Oil and gas clients benefit from our focused approach, strong execution, and customized services. Whether you want to expand existing reserves, acquire, or streamline operations, we can support your growth with banking products that include:
Capital Raising
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Commodity and Trade Finance
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Asset-Backed Lending
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Project Finance
Global Trust Services
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Supply Chain Finance
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Bank / Account Rationalization
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Liquidity Management
Improve working capital management
The issuance of Letters of Credit and Bank Guarantees for the Company’s purchases of crude oil and refined petroleum products and ensuring that both cargoes and storage facilities are financed and insured in a timely manner!
The Oil & Gas Trade Finance team in Bayrock Services Ltd is a key department within the Group. The ability to both raise liquidity from our financial partners and mitigate credit and performance exposure of our trading counterparties are key responsibilities for any successful company.
Bayrock Services Oil & Gas Trade Finance team has many key partners, including but not limited to, our Banking & Insurance partners, external counterparties, Traders, Operations, Credit, Compliance.
+1 (305) 539-0392
Support Person
On a daily basis, the Trade Finance team performs several tasks, such as:
- The issuance of Letters of Credit and Bank Guarantees for the Company’s purchases of crude oil and refined petroleum products and ensuring that both cargoes and storage facilities are financed and insured in a timely manner.
- Overseeing analysis, monitoring, mitigation, and awareness of the Company’s financial risks.
- Ensuring compliance with the storage and commercial contracts in protecting the Company’s interests.
- Making appropriate financial decisions, including overseeing cost-effectiveness, diversity of financing sources, and minimum use of the Company’s own liquidity.
- Providing guidance to Finance Officers and Traders in difficult or unfamiliar situations.
- Carrying responsibility for the maintenance of the regional bank lines as well as serving as the Company’s main liaison with our Banking partners.
- Overseeing that the Company is not exposed to risks associated with the regulations in force at any time.
- Working with Deals Desk personnel to ensure any incurred costs agreed by Trade Finance are allocated correctly to the separately maintained deal Profit & Loss accounts.
To fully master the role takes years of training as it requires an in-depth knowledge of every element of physical trading, the counterparties we trade with, and any regional-specific issues regarding security and risk. It is essential to maintain a flow of communication with all key partners as deal specifics can change hour by hour.
Oil & Gas Trade Finance Package
Oil & Gas
Storage Facility
The issuance of Letters of Credit and Bank Guarantees for the Company’s purchases of crude and refined petroleum products and ensuring that both cargoes and storage facilities are financed and insured in a timely manner.
Crude And Refined
Petroleum Transportation
Many smaller oil fields are not connected to a refinery by pipeline. When stock tanks are full of crude oil it is then transferred to a road tanker or tanker truck. These trucks take the oil to refineries or to wherever else it is needed by road.
Maritime and
Vessel Finance
Our oil & gas trade finance program covers a broad range of energy-based and maritime transactions. Reserve-based loans secured by oil and gas reserves onshore and offshore, volumetric production payment financings, operation agreements, and master service contracts.
BAYROCK SERVICES LTD
OIL & GAS TRADE FINANCE & STRUCTURED FINANCE:
OIL & GAS TRADE FINANCE & STRUCTURED FINANCE:
- Acquisition Finance
- Asset-based financing (Reserve-Based Lending & Mining)
- From Pre-Export Facilities and bridge loans to junior/mezzanine financing
- Transactional Finance
- Borrowing Base Facilities
- Commodity Carry Solutions – CSS
Solution-oriented innovative team:
Thanks to in-depth knowledge built up over more than 13 years, Energy & Natural Resources offers a complete, integrated, and high value-added range of solutions. This comprehensive offer includes advisory (from debt, rating, and capital structure), origination, arrangement, structuring, and distribution of financing solutions (commodity trade finance, corporate and structured finance transactions), bond issues, equity transactions, and hedging solutions.
Longstanding relationships with key industry players
Investment grade bond issuance
Strong technical skills
Compared to other infrastructure-intensive sectors such as power and utilities, limited recourse and non-recourse project finance are less widely used for upstream oil and gas. Upstream oil and gas are capable of but don’t always lend themselves to being project financed. This is because project finance lenders look for stability, and future revenue streams are typically less stable and predictable for oil and gas projects than for large infrastructure or utility projects, which may have regulated or inflation-linked returns.
Oil and gas projects can face substantial logistical, infrastructural, and social issues and the industry’s record of accomplishment of completing projects on time and on a budget is not necessarily favorable. The strength of the security package and practicalities of enforcing this security is a key concern for lenders, as stepping into a partly developed project is rarely, if ever, an attractive proposition.
Other factors Bayrock Services Ltd will weigh up when deciding whether to finance an oil and gas development include:
- The quality of the resources and reserves
- The technical complexity of the project
- The record of accomplishment of the management team
- The likelihood of cost overruns and delays in achieving commercial production; and
- The political and fiscal stability of the project’s host authority
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Global Oil & Gas Trade Finance Program
Trade finance helps settle the conflicting needs of the exporter and the importer. An exporter needs to mitigate the payment risk from the importer, and it would be in their benefit to accelerate the receivables. On the other hand, the importer wants to mitigate the supply risk from the exporter, and it would be in their benefit to receive extended credit on their payment. The function of trade finance is to act as a third party to remove the payment risk and the supply risk, whilst providing the exporter with accelerated receivables and the importer with extended credit.
Oil & Gas Trade Finance Program
Bayrock Services Trade Finance Program
Managing trade risks
Trade finance is used when buyers and sellers require financing to assist them with the trade cycle funding gap. Buyers and sellers also can also choose to use trade finance as a form of risk mitigation. For this to be effective the financier requires:
– Control of the use of funds, control of the goods, and the source of repayment
– Visibility and monitoring over the trade cycle through the transaction
– Security over the goods and receivables
NON-RECOURSE LOAN
OIL & GAS
TRADE
FINANCE!
We are Bayrock Services Limited, a professionally managed, responsible, and ethical company, determined to be widely recognized for our bespoke financial services specially designed for your Bank Guarantee (BG) and Standby Letter of credit (SBLC) lease.
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