Paul Eardley-Taylor, Head of Oil and Gas Southern Africa, Standard Bank
Paul Eardley-Taylor is responsible for Standard Bank’s Oil & Gas coverage activities for South Africa and Southern Africa. Paul has over 15 years of energy investment banking experience, covering the Oil & Gas, Power & Utilities and Renewables & Carbon sub-sectors, and has been based in Africa for over 4 years. Paul’s product experience encompasses project financing, development and advisory; privatisation; corporate banking; M&A; strategic advice; carbon; as well as associated derivative products. Prior to joining Standard Bank in 2009, Paul worked for HSBC for over 10 years and gained extensive experience of transactions across EMEA.
Paul answered a few questions, ahead of MMEC 2018:
Standard Bank along with ICBC, has recently invested in the Coral (FLNG) development, how do you see this benefitting Mozambique and surrounding countries?
Coral FLNG is very important for Mozambique. As a percentage of Mozambique’s GDP it is very large (over 70%); it is Africa’s largest ever project financing and one of the world’s first FLNG developments. It essentially forms the template for the onshore LNG plants (excluding land elements) and offers significant fiscal and balance of payments benefits. We expect Coral will help establish a benchmark for LNG purchases for Southern and Eastern Africa (given minimal shipping distance from Coral)
Can you tell us a little bit about Standard Bank’s strategies to develop east Africa as a global energy hub?
Standard Bank is a universal bank that operates across personal, business, corporate and investment banking. We believe the region’s development of its material Oil and Gas resources (covering Mozambique, Tanzania, Uganda, Kenya) can only benefit the region’s economies and all citizens within it. To that end, we seek to assist our oil and gas clients develop their energy projects, and regional Governments to understand the national benefits of the same
What do you see as the key risks and opportunities in Mozambique currently?
Mozambique’s sovereign debt challenge is well-known and publicised. From an O&G perspective, it is crucial to maintain the momentum of the LNG projects’ development. Coral’s closure, the approval of the Golfinho FDP and increasing purchases by the likes of China and India offer a window of opportunity to execute SPAs over the next two years such that Golfinho and Mamba can achieve FID. This will need all parties to work together in a market-focused manner against the pressure of competing greenfield LNG developments from the likes of USA, Canada and Russia.
Given Mozambique’s LNG potential, what are some of the main factors that need to be consider in order to develop the industry sector?
Outside of signing SPAs (market influenced) and raising the necessary debt finance, it will be important for Mozambique to be realistic and practical concerning its objectives for developing domestic gas projects (fed by the offshore developments). Standard Bank envisage that careful development of, in time, fertiliser, power, Gas to Liquids and petrochemicals projects can have a major impact on Mozambique’s economy, through beneficiation of resources, increasing GDP and employment