KNOWING MATTERS

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WASHINGTON – March 26, 2018 - In a new insights video released today by Baker Botts L.L.P., a leading international law firm, Steven Miles, Chair of the LNG Practice, examines the key Global LNG trends over the past twelve months, and highlights the most topical issues and market opportunities to watch out for in 2018.
 
Key Global LNG trends
  • 12% Growth in LNG production in 2017 produced an abundance of supply

  • A buyers’ market drove innovation and creativity on the seller side — e.g. LNG-to-Power projects and FSRUs

  • But worldwide GDP growth and higher oil prices in 2018 are increasing LNG demand, leading to a need for increased investment and a heightened focus on launching new projects in order to avoid a shortfall in 2020-2024.

  • The search for creditworthy buyers with volume will continue, particularly in Asia

  • Renewables and LNG can partner together to achieve countries’ and companies’ clean energy goals

  • Buyers are seeking new business and contractual models to match their business objectives

 
steven miles video












Steven Miles

Partner in the Washington D.C. Office

“Some have suggested that the era of long-term LNG supply contracts is over, because buyers can buy LNG in the spot market. We do not agree. In our work around the world, we see continuing interest by both buyers and sellers in the security and financeability that long-term contracts provide.”


View our LNG Video

Mr. Miles serves as Baker Botts’ Energy Sector Chair and also heads the 50+ lawyer LNG practice at Baker Botts. He has worked on over 100 major LNG transactions worldwide. From drill bit to burner tip, the firm offers its LNG industry clients integrated service and in depth capabilities across the value chain. This breadth and depth of experience enables the firm to help its clients launch some of the LNG industry’s most innovative projects.
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Baker Botts’ Lawyers comment on Private Equity Trends in the Oil and Gas Sector

HOUSTON AND LONDON – March 27, 2018 - Private Equity (PE) investment in oil and gas companies has raised $100 billion since 2014 and is predicted to continue to bridge the funding gap as a key source of capital vs. more traditional lending sources in North America and Europe during 2018.
 
Baker Botts’ lawyers predict that the recent trend of PE companies purchasing legacy E&P assets, undertaking drillco joint ventures (JVs), investing in midstream and downstream infrastructure projects will continue as investors seek new growth opportunities in the oil & gas sector.
 
“The funding landscape of the oil and gas industry has shifted dramatically over the last five years in the US, as private equity players have both entered the market as competitors to strategic oil & gas companies but have also partnered with them in developing many of the shale plays. Infrastructure investments are also on the rise around the oil & gas sector, as the expansion in drilling is driving a new round of midstream and other infrastructure development to handle the resulting hydrocarbons. Private equity involvement in the oil & gas upstream and midstream sectors has been good for the industry and will continue to grow,” said Jason Bennett, Chair of the Global Projects Practice, and a partner in Baker Botts’ Houston office.
 
“The main driver for PE activity outside the US has been low valuations, with the upstream sector generating the most interest. In mature regions like the UK, a particular challenge is how to manage decommissioning costs, and this has had a big impact on the structuring of recent deals,” added Paul Exley, a Corporate partner in Baker Botts’ London office. Mr. Exley commented, “The scale and uncertainty around these costs makes it difficult to ‘price them in’, so parties are having to be more creative to get the deals through.”
 
“Analysts are predicting that by 2020 many private equity oil & gas sector investors will have progressed investment portfolio diversification, and we will have seen a major shift in the location of infrastructure spending from the West to the East. Portfolio companies and funds with a better understanding of these trends in the international markets will be well positioned to capitalise on stabilised oil prices over the medium to long term, making their investment in longer cycle projects more attractive. Whilst some more established IOCs, and strategic players are ahead of the investment community in this regard, and are already replenishing their inventories in projects with first production post 2020, there remain significant opportunities for private equity in this more diverse and developed energy and infrastructure investment environment,” added Hamish McArdle, a Global Projects Partner in the London office.
 
Jason Bennett, Paul Exley and Hamish McArdle are available to discuss the increasingly pivotal role of PE firms in the oil and gas sector and examine what the future holds for larger E&P or upstream players looking to pursue JVs or divest their assets.
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London Law Firm Helps Fight Meningitis

LONDON, 12 April, 2018 - London based lawyers and staff at global law firm Baker Botts (UK) LLP are fighting back against meningitis through their support of UK charity Meningitis Now.
 
They have chosen the UK’s leading meningitis charity as their charity for the second quarter of this year.
“Both as individuals and as a firm, we are strong believers in supporting charities. We are very excited to be partnering with Meningitis Now to raise much-needed funds and help to continue the great work they do,” said Baker Botts Associate Sarah Beaumont.

Sarah suggested Meningitis Now in memory of her friend Nigel Bulmore, who sadly passed away from meningitis in 2007.
 
She added: “Each quarter a different member of staff fronts the charity initiative for the London office. Staff then raise funds through a range of events and donations for the chosen charity. We plan on hosting drinks socials, office Olympics, a cocktail and canapé reception and a raffle, plus dress-down Fridays every week throughout the quarter. We’ll also be handing out the charity’s signs and symptoms cards and putting collection boxes – and cakes – in the kitchens to encourage donations.”
 
Over the last 178 years, Baker Botts has established a long and distinguished tradition of giving back to the communities in which its lawyers and staff live and work. 
 
Harry Gardner, Corporate Account Executive at Meningitis Now, said: “Thank you so much to Sarah and everyone at Baker Botts for supporting us."
 
“Meningitis is a devastating and deadly disease that can kill, or leave survivors with life-changing disabilities and ongoing health issues, such as memory loss, deafness and loss of limbs. As a charity that receives no Government funding, Meningitis Now relies entirely on the generosity, energy and initiative of our supporters to raise the vital funds we need to carry out our lifesaving and life-changing work. Their efforts will make a real difference to those who are at risk from meningitis and those whose lives have already been changed forever because of it.”
 
Meningitis Now is working towards a future where no one in the UK loses their life to meningitis and everyone affected gets the support they need.
 
It does this by funding research into vaccines and prevention, raising awareness so people know what to look for and what action to take if they suspect meningitis and rebuilding futures by providing dedicated support to people living with the impact of the disease.
 
For more information visit www.meningitisnow.org
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Baker Botts Intellectual Property Team Wins Inter Partes Review Appeals for Client Pharmacosmos

NEW YORK, April 12, 2018 - Baker Botts L.L.P., a leading international law firm, today achieved wins at the United States Court of Appeals for the Federal Circuit (Federal Circuit) on behalf of firm client, Denmark-based, specialty pharmaceutical maker, Pharmacosmos.

In connection with two inter partes review (IPRs) proceedings, the U.S. Patent Trial and Appeal Board (PTAB) invalidated 25 claims from two patents owned by competitor Luitpold Pharmaceuticals, Inc. relating to parenteral iron therapy, and Luitpold appealed the decisions in both IPRs. The Federal Circuit summarily affirmed those decisions under Federal Circuit Rule 36 today.

The Baker Botts team was led by Paul Ragusa, who argued the appeals before the Federal Circuit. The team included partners Jennifer Tempesta, Steve Lendaris, Lisa Kole (retired) and associates Carolyn Pirraglia and Amy Song.
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Baker Botts’ Chair of the Worldwide LNG Practice Examines 2018 Global LNG Trends