An Intricacy of Project Financing for Offshore Projects – Expanding a Tool for Better Project Management

摘要

The offshore industry is using project finance morernextensively than ever before. Project financing requires thernallocation of risks and rewards among the involved parties in arnmanner that is mutually acceptable. In other words, projectrnfinancing strives to allocate risks to those who are bestrnpositioned to manage it. The task of managing risks andrndelivering to expectations is not new; but with issues such asrninterface management, minimizing change, and managingrnexpectations better among stakeholders, an expanded tool isrnneeded.rnIn reviewing project finance intricacies, by definition, wernwould look at the distinguishing details, ins and outs,rnworkings, particulars, niceties and minutiae that one canrnanticipate having to deal with in financing offshorerndevelopment. This paper focuses on one of those intricaciesrnthat can be used regardless of whether using conventionalrnfinance or project finance for any offshore project - the projectrnfinance discipline tool of project payment milestonernschedules.