Siccar Point strikes £500m investment from Blue Water and Blackstone Energy for new N. Sea oil and gas exploration

 

Graeme Sword, Partner, Blue Water Energy
Graeme Sword, Partner, Blue Water Energy

Siccar Point Energy – a new Aberdeen-based company – has secured a $500 million investment from Blue Water Energy and Blackstone Energy Partners to fund new oil and gas exploration and production in the North Sea.

Founded in 2011, Blue Water Energy is a leading global middle market energy private equity firm based in London.

Siccar Point Energy will participate across the full value chain from exploration through to production. It will initially focus on UK Continental Shelf (UKCS) opportunities where a change of control will facilitate follow-on investment activity that will further enhance asset potential.

The team has experience in managing large, complex assets in the UKCS whilst adopting innovative technologies and strategies to unlock the maximum commercial hydrocarbon potential. The company will also have a strong North Sea exploration focus that targets the best returns taking account of both technical and fiscal factors.

Siccar Point Energy is led by Chief Executive Jonathan Roger, former managing director of Centrica Energy Upstream, where he led the business from early 2010 following the acquisition of Venture Production Plc. He was formerly chief operating officer at Venture Production, which at the time of the acquisition was producing over 50,000 barrels of oil equivalent per day (“boepd”).

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During his tenure at Centrica, Roger managed an international portfolio of over 180,000 boepd of production, including the sixth-largest UK production business, a Netherlands business established during his Venture tenure, and he also oversaw Centrica’s growth as the fastest growing independent in Norway during the last decade.

He will be joined by an experienced team, including Iain Bartholomew as Subsurface Director, Doug Fleming as Finance Director and David Sheach as corporate legal advisor.

Roger said: “This is a great time to build a business in the North Sea for a well-capitalised and experienced team with a focused strategy.

 “It is a period during which some of the largest upstream companies are cutting back on capital expenditures and consolidating their global asset portfolios. We believe that selective capital deployment and efficient operations can deliver attractive returns in this environment.”

Graeme Sword, Partner, Blue Water Energy  – and a geography graduate from Dundee University – said: “Exploration 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.”

Mustafa Siddiqui, Managing Director, Blackstone Energy Partners, added, “Blackstone has invested approximately $7 billion of equity in the energy sector over the last decade, the majority of which has been to fund the formation of new companies and capital expenditure needs of existing high-growth companies led by entrepreneurial management teams.

“We look forward to partnering with them and Blue Water Energy to build Siccar Point into a leading independent oil and gas company.”

Why Siccar Point Energy?

Siccar Point is a headland on the North Sea coast of the Borders and is regarded by many as the most significant site in the emergence of the science of geology. The site is famous for Hutton’s Unconformity, a classic example of one set of strata (in this case Old Red Sandstone) lying unconformably ie at a sharply different angle to the rocks beneath (steeply dipping Silurian aged greywackes).

Siccar Point’s fame stems from a visit in 1788 by James Hutton, later hailed as the ‘Father of Modern Geology’

 

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