Firms pump $1.4bn into oil and gas deals

Two separate investments from Standard Chartered Private Equity and First Reserve come as energy fundraising reaches record levels.

Standard Chartered Private Equity, the buyout arm of the emerging markets bank, has bought a 4.2 percent stake in South East Asian oil and gas company Salamander Energy, according to a statement. Terms were undisclosed but the company’s market capitalisation is £252.5 million ($494.2 million; €339 million) valuing the stake at around £10.6 million.

Oil and gas:
PE haven 

The seller was one of the pre-initial public offering investors when the company listed on the London Stock Exchange in December 2006 raising $405 million (€278.5 million).

Separately, energy specialist First Reserve Corporation bought the Baroco Oil Refining Company for approximately $900 million.

The Bahama-based company’s main asset is a Caribbean-based 20 million barrel independent storage terminal for crude oil, fuel oil and multiple petroleum products.

Fundraising remains feverish for energy funds. As reported in the November issue of sister magazine Private Equity International, Riverstone Holdings, the Carlyle Group affiliate that recruited BP chief executive Lord Browne of Madingley last year, is targeting a total of $10 billion for its latest vehicles, a $6 billion global energy and power fund and a $4 billion renewables fund. Other firms with energy funds in the market include ABN Amro, Natural Gas Partners, Swicorp, EnCap Investments and Tenaska.

The oil and gas sector generally has been a significant driver of dealflow with little let-up since June, while other deals have stalled. Earlier this month global buyout firm The Carlyle Group and Riverstone Holdings invested $450 million in a new oil and gas company Dynamic Offshore Resources.