It may seem like an uncertain business environment but, if you are in the energy industry, there are opportunities.
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The sector has remained active throughout the pandemic and the current economic crisis. However, the war in Ukraine has reminded us of our energy dependence and highlighted areas of weakness in global supply.
“Energy is at the top of the agenda,” says top-ranked corporate finance lawyer Alasdair Freeman of Burness Paull.
He is convinced that there will continue to be high levels of activity for those in the energy industry, if the current deals market and energy landscape are anything to go by.
He said: “Globally, energy consumption is increasing. Energy providers are getting a lot of coverage and scrutiny at the moment because, fundamentally, energy is more relevant than ever as we seek to ensure continuity of supply – alongside the longer-term goal of achieving net zero.
“There has also been increased focus on making sure we can generate our own energy. All of this creates a demand for legal services.”
Recent UK energy windfall taxes will inevitably give investors cause for reflection, but government has clearly decided that the industry can bear the tax imposition.
The key role of legal advisers
The changing nature of energy and the diverse range of stakeholders requires legal advisers to offer an element of horizon watching, appraisal of market developments and trends, and only then giving relevant legal advice across a range of specialisms.
Alasdair is part of the tier one ranked team of over 60 corporate finance experts who reflect Burness Paull’s “human and high performing” values.
Energy clients demand a thoughtful response from their advisers and Alasdair and colleagues are recognised as bringing their clients a complete package of specialisms – in areas such as employment, tax, real estate and regulatory law – to the negotiating table in a seamless manner.
Burness Paull’s membership of Lex Mundi, a global alliance of leading independent law firms, and the strong relationships the firm maintains in key markets, ensures that the team regularly advise on multi-jurisdictional mandates.
We support our clients to achieve their strategic goals, providing advice throughout the life cycle of a business, attracting investment, and making acquisitions, as well as providing day-to-day legal advice in areas such as employment or litigation.
“The energy market requires significant regulatory advice for onshore and offshore operations, and we help clients navigate that complicated process. We also advise clients on protecting their key technologies and ensure they maximise value.”
Energy “will always be essential”
Clients have been focused on accelerating their energy transition, with net zero being the ultimate goal, explains Alasdair.
“Aberdeen has traditionally been focused on oil and gas-related activities, but there has been a clear move towards renewable and clean energy in recent years.
“Clients are busier than they have ever been. We have certainly seen a lot of activity in the market around businesses investing for the future. Oil and gas will have to support the transition and energy supply mix – and that requires investment.”
General uncertainty within the global economy does bring headwinds but energy is, and always will be, essential, Alasdair says.
“Energy is a critical enabler for the economy and the market opportunities in the sector mean our clients are optimistic – they anticipate being active in the pursuit of energy security and the journey to net zero, and we look forward to continuing to support them.”
Burness Paull is a leading independent law firm working with clients in the UK and internationally. Find out more about Burness Paull and its services.
