Crossing the Atlantic: The Rise of European-Style RBLs in the U.S. Gulf

In a recent article for Hart Energy, Sidley partner Mahalia Doughty, a member of the firm’s Energy and Infrastructure practice, examines the growing use of European-style reserve-based lending (RBL) facilities in the U.S. Gulf and the factors driving their adoption.

For energy companies, borrowers, lenders, and sponsors navigating offshore development financing, the article provides insight into how European-style RBLs differ from traditional U.S.-style structures and the considerations that may inform the choice between them. Mahalia explores how European-style RBLs can provide greater lending capacity, increased funding certainty, and greater flexibility for longer-term offshore development, while also addressing their added complexity and lender oversight. She also examines the market forces driving adoption of these structures among U.S. borrowers and an expanding lender base.