• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 8 mins Shale Oil Fiasco
  • 1 hour USA v China. Which is 'best'?
  • 2 hours Everything you think you know about economics is WRONG!
  • 47 mins Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 12 hours Quotes from the Widowmaker
  • 48 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 day Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 1 day Offshore is changing
  • 17 hours True Confessions of a Billionaire
Alt Text

OPEC Optimism Lifts Oil Prices

Oil prices inched higher on…

Alt Text

This Oil Niche Is Performing Well Even With Low Prices

Despite low oil prices keeping…

Alt Text

What Can We Learn From Peak Whale Oil?

Whale oil was once the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Why Is This Private Equity Fund Scooping Up Billions In North Sea Assets

I’ve been discussing the return of big oil and gas M&A the last several weeks. And yesterday we got more confirmation it’s “money on” right now in the global petroleum sector — with one of the biggest single deals in years coming down in an unexpected place.

From a virtually unknown acquirer — which has instantly become the largest independent producer in the neighborhood.

That’s a London-based firm called Chrysaor Holdings. Which yesterday unveiled a $3.8 billion purchase of North Sea assets from Shell.

Under the deal, Chrysaor is buying Shell’s working interest in seven North Sea projects. Coming with a current 115,000 b/d of oil equivalent production — plus another 13,000 b/d production in the Shetland Islands, which is expected to be onstream soon.

In total, Chrysaor will acquire 350 million barrels of proven and probable reserves — making the firm the largest U.K. independent producer focused on the North Sea. In fact, one of the largest producers overall in this area.

Here’s the most interesting part: the deal appears to have been orchestrated by private equity backers. With Chrysaor paying for the assets partly through a $1 billion investment from PE outfit EIG Global Energy Partners.

That’s a very telling move, given that EIG is a Washington, D.C.-based fund that has to-date focused on U.S. oil and gas projects — with some stepouts to Australia and South America. Related: Why Is Everyone So Bullish On Oil?

But now this big buyer want to take a run at the North Sea. Suggesting management sees potential in this mature basin, even as majors like Shell exit in favor of higher-impact plays.

This is much like what happened in the U.S. Gulf of Mexico shelf the last few years. Where majors like Chevron sold big asset packages to private equity-backed E&Ps.

It will be critical to see what happens next. If new kids like Chrysaor can indeed grow production and reserves, it could encourage further PE purchases of mature assets. Watch for operational updates from the North Sea’s new leading producer.

Here’s to doing the shuffle.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Nick on February 01 2017 said:
    EIG's precursor company was called TCW - which made a number of investments in the UK North Sea, including a successful vehicle called CH4 (run by now-CEO of Chrysaor). Blair Thomas (now CEO of EIG) personally led most of those deals for TCW - so less surprising in that light.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play