Private Equity News & Analysis

Avista to invest $100m in European energy exploration

The DLJ spin-out is backing London-based Hansa Hydrocarbons, an oil and gas exploration and production company, with an investment from its $2bn debut fund, closed last year.

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Avista Capital Partners continues to strengthen its energy portfolio with a $100 million (€63 million) investment in Hansa Hydrocarbons.

The London-based Hansa is focussed on acquiring and developing oil and natural gas properties in the North Sea and Northern Europe, which can then be used to fuel supplies to Western Europe.

“With major oil and gas companies leaving the North Sea to focus on larger fields elsewhere, we think considerable opportunities exist to acquire and develop stranded natural gas assets which have either been overlooked or are too small for larger companies to cost-effectively develop,” Steven Webber, Avista co-managing partner, said in a statement.

He added that supply is unable to meet European natural gas demand, making the investment appealing.

Last week Avista added John Huff to its stable of energy industry advisors. Huff is board chairman of Oceaneering International, a global oilfield provider of engineered services and products, and has more than 20 years of industry experience.

Avista, which in 2005 spun out of DLJ Merchant Banking, has offices in New York and Houston, Texas. The firm is investing its $2 billion debut fund, targeting energy, healthcare and media companies.