Brent falls - impact on E&A

Brent (above) has now fallen >25% since June...what are the E&Ps going to do...

Onshore flexibility, but not in the offshore

• Longer lead times, offshore spend tends to be committed vs. onshore
• Likely see cut back in E&A instead

Delayed payments

• Kurdistan, DNO and Genel are still to be paid for pipeline exports
• Egypt, TransGlobe has built up USD185m of receivables
• Nigeria, Seplat has built up USD215m receivables as government partners/stakeholders have been slow to pay

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