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Siccar expands in region

Biggest oil deal of year as Aberdeen firm buys cheap assets

Oil rig vidAn Aberdeen-based private equity-backed firm has bought a number of assets in a transaction worth up to $1 billion (£810m), the biggest deal in the North Sea this year.

Siccar Point Energy has acquired the UK arm of Austrian energy group OMV which includes sizeable stakes in a number of producing fields and discoveries.

The deal comes on the back of depressed North Sea values, leaving assets at historic low levels.

It is the second in four months by Siccar, backed by funds managed by Blue Water Energy and Blackstone Energy Partners.

Siccar is buying a portfolio focused mainly  West of the Shetlands. It includes an 11.8% interest in the Schiehallion oil field and a 20% stake in the Rosebank field.

There is also a 5.6% share in the producing Jade field and several West of Shetland discoveries.

The operation is led by Jonathan Roger, who ran Centrica’s oil and gas unit and launched Siccar in 2014.

He was chief operating officer of Aberdeen-based Venture Production before it was acquired by Centrica.

He said the acquisition was a good strategic fit for Siccar.

“We are very excited about this next stage in the company’s growth,” he said.

Mustafa Siddiqui, managing director at Blackstone, said: “The combination of low-cost production in the near term from Schiehallion and long-term growth from the development of its other assets is very attractive, especially in the hands of a very capable management team with strong capital backing.”

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