• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours The EU Loses The Principles On Which It Was Built
  • 42 mins Crude Price going to $62.50
  • 6 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 11 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 11 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 11 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 6 hours Why hydrogen economics is does not work
  • 13 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 19 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 17 hours Saudi Aramco IPO Seems Unlikely
  • 3 hours < sigh > $90 Oil Is A Very Real Possibility
Are Natural Gas Prices About To Break Out?

Are Natural Gas Prices About To Break Out?

Natural gas inventories are low…

Why Is Big Oil So Excited About Alaskan Crude?

Why Is Big Oil So Excited About Alaskan Crude?

Alaskan officials have just published…

Private Equity Hunting For Oil & Gas Assets In South-East Asia

Oil Industry

Companies backed by private equity firms and former executives at Big Oil are seeking to buy oil and gas assets across Southeast Asia, as lower current valuations and oil majors selling assets to raise much-needed cash offer investment opportunities for those with cash in hand.

Private equity-backed companies see Southeast Asia—a region expected to grow rapidly, and a region that is home to cheap and small fields nearing production start—as an opportunity to invest now and resell the assets in a few years, Reuters reports, citing industry sources and lawyers.

The potential investors are ready to invest US$100 million-$200 million per asset in production or almost in production, and plan to divest said asset in five to ten years, Reuters quoted oil and gas lawyers as saying.

“(They) are coming in particular as some of the oil majors are going through downsizing and selloffs and they (private equity firms) are looking for the right sized pieces to pick up,” Michael Arruda, a partner in Baker Botts law firm in Hong Kong, told Reuters.

Multinational private equity firms KKR and The Carlyle Group, for example, are supporting companies willing to invest in oil and gas in Southeast Asia. In addition, at least six former senior managers at oil and gas groups have joined buyout firms or founded their own firms to invest in assets, according to industry sources.

Related: Winners And Losers Of The OPEC Deal

Bill Lafferrandre, who just left ConocoPhillips after 31 years and whose last position there was Vice President, Asia Pacific Business Development, co-founded Sea Dragon Resources, a Singapore-based startup company seeking to build a balanced portfolio of E&P assets in SE Asia. According to Reuters, Lafferrandre seeks to buy E&P oil and gas assets in countries such as Indonesia, Vietnam and Thailand.

Oil majors, on the other hand, are in desperate need of cash in the lower-for-longer world, and are looking to divest “non core” assets. Since the majors usually opt for spending whatever money they do have on investment opportunities that increase oil production (greenfield), rather than opportunities that just maintain it (brownfield), their mature assets in Southeast Asia are an obvious choice for this divestment.

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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