Blackstone and Blue Water in $500m North Sea deal

The deal will be the fourth investment from Blue Water’s $861m debut fund

UK-based Blue Water Energy has teamed up with The Blackstone Group to invest $500 million in North Sea oil exploration and production company, Siccar Point Energy, according to a statement.

Blackstone and Blue Water have both invested $250 million, but Blue Water has syndicated some of its stake to Singaporean sovereign wealth fund GIC, an investor in Blue Water Energy Fund I, a Blue Water spokesperson told Private Equity International. The spokesperson declined to comment on the size of GIC’s stake.

Siccar Point Energy is led by chief executive officer Jonathan Roger, the former managing director of oil exploration company Centrica Energy Upstream. He has been working in close collaboration with Blue Water Energy since he left Centrica last year to formulate Siccar Point’s business plan. In early 2014, Blackstone was invited into the deal.  

“E&P is a key part of our fund strategy. We have a strong belief that there are continuing opportunities in the North Sea for well managed companies with a clear strategy and access to capital,” Graeme Sword, a partner at Blue Water Energy, said.

Blue Water made the all-equity investment using capital from its Blue Water’s debut fund, an $861 million vehicle that reached its hard-cap in May 2013. That fund has made fourth investments so far; in July, Blue Water invested in Unique Maritime Group, an offshore solution provider, while last November it backed Halvorsen Group, a Norwegian oil and services company. In April 2012, Blue Water acquired Epic Midstream; an investment platform focused on acquiring and enhancing water-based hydrocarbon storage assets.

Blackstone, which declined to comment on the statement, has invested in Siccar Point Energy using capital from its Blackstone Energy Partners I, a $2.5 billion vehicle that closed in September 2012, according to a source close to the matter.

The firm has invested approximately $7 billion of equity in the energy sector over the last decade, it said in the statement.