GDF SUEZ’s recent announcement of its acquisition of a 25 percent interest in 13 UK onshore petroleum exploration and production licenses from Dart Energy Limited is the latest indication that the shale industry is experiencing an international boom, according to Baker Botts energy lawyers. Baker Botts advised GDF SUEZ on the Dart Energy deal.
The GDF SUEZ agreement with Dart Energy — which is subject to the satisfaction of various conditions — joins a growing list of international transactions announced in 2013, indicating that lessons learned in the U.S. shale industry are fuelling growth and interest in the global marketplace. Deals and opportunities were announced this year in the Ukraine, Russia, China and Argentina, among other markets.
“The UK has shown it is open to onshore shale gas development – the regulatory and tax environments are particularly encouraging. The government clearly recognizes the potential in shale gas,” said London-based Baker Botts Partner Hamish McArdle, who was lead outside legal counsel on the GDF SUEZ transaction.
“What we have learned working alongside our clients with interests in developing shale plays across the US will serve our international clients well,” McArdle said. “The key for continued international growth in the shale industry is the ability to understand the legal, cultural and economic issues each country or region presents. Our global offices are well-positioned in strategically important markets with lawyers intimately familiar with doing business in their respective countries and regions.”
Baker Botts lawyers in all practice areas related to the shale industry work collaboratively on transactional, environmental, regulatory, dispute resolution and litigation matters.
“It takes a broad and deep knowledge of how the shale industry developed in the United States to help clients effectively find the proper approach to becoming involved in shale in the international market-place,” said Steven Wardlaw, Partner in Charge of Baker Botts’ London office who previously served in the same capacity for the firm in Moscow.
“As the international market for shale continues to expand and evolve, clients will need advisers in all disciplines who have the latest knowledge in a rapidly changing sector. We hope to fill that space in the legal sector.”
