WASHINGTON--(BUSINESS WIRE)--Harbour Energy, Ltd., the energy investment vehicle managed by EIG Global Energy Partners, today announced it has agreed to lead the acquisition by Chrysaor Holdings Limited of a well-diversified portfolio of oil and natural gas assets from Shell U.K. Limited and its affiliates to create the UK’s leading independent oil and gas company focused on the North Sea.
The asset package has strong cash flows at current commodity prices and includes Shell interests in ten operated and non-operated fields areas, in addition to associated infrastructure and midstream assets, and an organization of approximately 400 employees. Collectively, the assets produced 115,000 barrels of oil equivalent per day in 2016, and we expect them to comprise approximately 350 million barrels of oil equivalent proven and probable (2P) reserves as at the transaction effective date of July 1, 2016. Harbour Energy, together with funds managed by EIG, will provide Chrysaor with up to $1 billion to support the acquisition and provide future growth capital. The remainder of the capital required for the acquisition will be provided by lenders.
Linda Z. Cook, the Chief Executive Officer of Harbour Energy, said, “Our investment in Chrysaor offers us a compelling opportunity to execute on our core strategy of investing in energy companies that we believe include high quality assets, strong management teams and significant long-term growth potential. With Chrysaor, Harbour Energy now has an immediately scalable, robust platform from which to invest in additional upstream energy assets and participate in further consolidation in this important region.”
R. Blair Thomas, the Chief Executive Officer of EIG, said, “This transaction is central to the strategy behind our creation of Harbour Energy— putting permanent capital to work to take advantage of long-term growth opportunities and applying our deep industry and operating expertise in pursuit of attractive assets made available by portfolio re-balancing occurring across the global oil and gas industry. The markets have dictated patience over the last few years, but we believe now is the time to lean-in and take advantage of the exciting opportunities we see developing in the energy sector.”
Both Cook and Thomas will serve as Directors on the board of Chrysaor, with Cook assuming the role of Chairman.
Advisor
White & Case LLP is serving as legal counsel to Harbour Energy in connection with the transaction.
About Harbour Energy
Harbour Energy, Ltd. (“Harbour Energy”) is an energy investment vehicle formed by EIG Global Energy Partners (“EIG”) and the Noble Group to pursue control and near control investments in high-quality upstream energy assets globally. Harbour Energy is externally managed by EIG and led by a management team that includes Linda Z. Cook, a 29-year veteran of Royal Dutch Shell, as CEO and Terence Jupp, former Vice President of International Operations for Anadarko Petroleum, as COO. For more information, please visit www.harbourenergy.com. EIG specializes in private investments in energy and energy-related infrastructure on a global basis and had $14.3 billion under management as of September 30, 2016. EIG has invested over $23 billion in more than 310 portfolio investments in 36 countries on six continents. For more information, please visit www.eigpartners.com.
