Abstract
ABSTRACT This paper discusses bank loans as they have been used to finance major offshore oilfield developments in Britain's North Sea. Two aspects are treated. The first covers the reasons underlying the difference between Bank's attitudes towards the money they lend and oil companies' attitudes to the money they invest in a project. This difference must be taken into account when considering loan finance for a project. The second aspect is the engineering content in loan arrangements for the loan technique known as production payments. Engineering forecasts of field performance are used extensively in this scheme and the loan structure depends heavily on engineering judgement.
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