• 50 mins India Exempts State Oil Firms Mergers From Competition Approval
  • 3 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 5 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 6 hours OPEC Set To Move Fast On Cut Extension Decision
  • 8 hours Nigeria Makes First Step Away From Oil
  • 20 hours Russia Approves Profit-Based Oil Tax For 2019
  • 24 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default

The Second Mega-Investment Deal Here Within Weeks

The Second Mega-Investment Deal Here Within Weeks

I thought I was reading an old copy of the oil and gas news. But it turns out that reports of a major private equity deal this week are actually completely new--and show an intriguing pattern emerging in an unexpected place.

I wrote late last week about energy investment specialists Riverstone Holdings making a big bet on the North Sea. With the Houston firm teaming up with Barclays Natural Resource Investments and Singapore sovereign wealth fund Temasek to inject $525 million into a new company focused on assets in the shallow-water of U.K. and Norway.

This week--just days later--we got news of another deal in this space. One that looks almost identical.

Private equity stalwart Blackstone Group announced it is also going to the North Sea.

Teaming up with London investment house Blue Water Energy and Singapore sovereign GIC to commit $500 million to a start-up here.

The firms' new North Sea vehicle is called Siccar Point Energy. Which will focus initially on oil and gas assets in the U.K. Continental Shelf--led by a management team that's been successful in this region before, most recently with the upstream arm of British gas company Centrica Energy.

The confluence of two big private equity deals here within days is striking. Especially given that few observers in the petroleum world believe the North Sea holds much in the way of production and reserves upside.

But this week's news release provides some clarity on where Blackstone and friends see the potential here. With Siccar Point noting that it will pursue "innovative technologies and strategies to unlock the maximum commercial hydrocarbon potential" for assets here.

Indeed a number of advanced drilling projects are today proceeding across the North Sea region. With techniques like directional wells and even hydraulic fracturing being tested to increase production from smaller and more mature fields.

Judging from the results of similar programs in places like the U.S. Gulf of Mexico Shelf, this could unlock a lot of new barrels. In which case, picking up acreage at today's very reasonable prices will be a profitable move.

Here's to lightning striking twice,

Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News