Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Bakers & McKenzie’s project finance practice spans the full range of work within the energy and natural resources sector, including power, petrochemicals, oil and gas, mining, infrastructure and renewables. The firm’s large capital markets and M&A practices help generate mandates in this sector as a result of the good relationships it enjoys with PRC companies and financial institutions. Bakers’ energy and natural resources work is also supported by the firm’s true multijurisdictional strength across China and Southeast Asia.

In one prime example, the firm represented CNOOC on the US$7.06 billion acquisition of BP’s 60% share in Pan American Energy by Bridas Corporation. Bridas is jointly held by CNOOC and Bridas Energy Holdings.

Bakers’ team also recently advised Bank of China on a financing that included both refinancing and acquisition elements of up to €900 million for a chemical project company. David Smith is the firm’s key projects partner in China.

DLA Piper’s energy and natural resources practice includes veteran partner Wan Li, who is based in the firm’s Shanghai office and has deep knowledge of corporate transactions in this sector. The firm is known for being able to handle a large volume of M&A and capital markets transactions, many of which are often energy or natural resources related.

DLA Piper’s China team recently advised China Coal Import & Export Company on its acquisition of a 51% interest in Queensland-based MetroCoal for US$30 million. The acquisition highlighted the multijurisdictional capacity of the firm, and also showed the group’s ability to advise PRC energy companies on key outbound acquisitions.

Herbert Smith is a leading energy and natural resources firm, and the practice is known for its deep relationships with multinational energy companies as well as its genuine knowledge of this sector. Herbies’ top M&A partners facilitate many of the firm’s deals in the energy space.

One client says: “The firm’s lawyers are cooperative, collegiate team players. We stand shoulder to shoulder and have a good, healthy relationship.”

In one representative transaction, a Herbies team, led by partner Anna Howell, advised PTT Exploration and Production (PTTEP) in its acquisition of a 40% share of the Kai Kos Dehseh Oil Sands Project. The deal was finalised via a purchase of 40% of the partnership units in Statoil Canada Partnership for US$2.28 billion.

Mallesons routinely acts for Chinese companies and multinationals in energy and natural resource transactions, especially in the M&A space. The firm’s strong grounding in Australia makes it a particularly strong choice for Chinese companies looking to invest in Australian natural resources assets.

In November 2010, Mallesons advised BG group in connection with its agreement with CNOOC to acquire an equity interest in the QCLNG project, which included a LNG sale and purchase agreement for a 20-year period. The project was the first fully documented coal seam gas to LNG project in the world, and also the first time that LNG from coal seam gas has been sold into China.

Clients praise the firm’s responsiveness and service. “We have engaged Mallesons for over eight years now,” says one client. “And we’ve dealt with our primary point of contact at Mallesons, John Shi, for some 14 years. As a result, we have considerable trust and faith in the firm and its abilities.”

Milbank is known for its increasing prominence in working on projects that involve PRC energy companies. “Milbank has really been a great growth story,” says a partner at a rival firm. “Its energy practice had a fantastic year in 2010.”

Milbank is often seen working with companies on capital markets transactions or with Chinese energy companies on outbound mergers and acquisitions. Veteran partner Anthony Root manages the Beijing and Shanghai offices and heads the Milbank corporate practice in greater China and Asia.

This past year was a busy one for Norton Rose, with its China teams often seen on energy and natural resources financing transactions involving longstanding client China Development Bank (CDB). “We use the firm for natural resource structured finance projects and cross border finance transactions,” says another client. “I would say the firm is adaptive.”

In one representative transaction, Norton Rose advised CDB on an outbound financing for solar power projects in Italy. The firm also represented CDB and Export and Import Bank of China on outbound acquisition financing involving a Moly Mines molybdenum/copper mine in Western Australia. The practice has also worked on a large number of inbound renewable energy deals.

Of Counsel Fei Kwok recently joined the firm’s Shanghai office, and will bring her knowledge of representing clients on complex financing and project development deals, with a particular emphasis on LNG, petrochemicals, and oil and gas projects.

Shearman & Sterling is well known in the energy and natural resources space for its robust relationships with leading project finance entities and deep projects experience. The firm boasts long term clients such as IFC and ADB, and regularly advises them on their major investments in projects across China and Southeast Asia. Leading projects partner and Shanghai head Andrew Ruff has over a decade of experience on regional projects work.

Most recently, the firm represented leading PRC financial entities on investments in outbound energy and natural resource projects. Shearman’s clients include Sinosure, China Exim, Bank of China and China Development Bank. In one high profile project, a Shearman team represented mandated lead arrangers Societe Generale, KfW, Bank Muscat, Bank of China, SMBC, HSBC, WestLB, OCBC, ICBC and Bayerische Landesbank on the development of the 1,500MW gas-fired Sur IPP in Oman. This was valued at US$1.8 billion.

From its oil-rich Texan roots to its present status as one of the world’s leading energy firms, Vinson & Elkins is involved on many of the leading energy M&A deals in China. The firm offers clients a full array of services across all practice areas, and is also particularly strong for IT, telecommunications and media work. Vinson & Elkins is often seen representing US companies on their China investments, as well as advising PRC companies on their outbound acquisitions.

Fulbright & Jaworski

Fulbright & Jaworski brings its historical expertise on energy and natural resources transactions to its greater China practice. Experienced partner Stefan Ricketts routinely represents top energy and power companies across the region on their investments and on the development of major projects. In one transaction, Ricketts led a team that advised Husky Oil China on its gas discoveries in the South China Sea. Fulbright represented the company on drilling rig contracting, disposition and relevant importation arrangements.

Skadden Arps Slate Meagher & Flom

Skadden’s work in the energy sector is derived from its leading M&A practice and its emerging project finance team. The latter is led by partner Alan Schiffman, who garners praise from clients. “When it comes to energy project finance he’s very well versed,” says one. “He understands key terms and requirements for international companies, he understands local Chinese markets, and he can bridge the gap between the two. He’s also very knowledgeable about the Asian energy market, and gives guidance on that.”

Clients are equally enthused about the practice. “It’s a pleasure working with the firm, including its associates,” says one. “What sets it apart is not just quality of partners but also its associates as well. We are working on a one-of-a-kind transaction, and the firm has helped to structure that very well.”

WongPartnership

WongParnership’s offices in China allow the firm to advise on project transactions with leading energy providers and financial institutions. In one notable transaction, the Singapore firm represented China Aviation Oil (Singapore) in its four-year agreement with BP Singapore involving a pool of aviation cargo, fuel and gasoil supplied for select destinations across Eurasia, including China.