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Private equity-backed Siccar Point makes first North Sea oil deal

Published 16/08/2016, 10:51
© Reuters.  Private equity-backed Siccar Point makes first North Sea oil deal
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By Ron Bousso

LONDON (Reuters) - Oil and gas venture Siccar Point said on Tuesday it had acquired a 8.9 percent stake in the UK North Sea Mariner field from JX Nippon (T:5020), the private equity-backed firm's first acquisition.

The deal highlights the growing role that such cash-rich ventures are playing in the ageing North Sea basin where oil and gas companies have struggled in recent years to sell assets following a sharp drop in oil prices.

Siccar Point, headed by industry veteran Jonathan Roger, a former Centrica (LON:CNA) executive, and backed by private equity firm Blue Water Energy and Blackstone (N:BX), was launched in August 2014 shortly after the start of the oil rout.

"We believe that this is a great time to build a business in the North Sea for a well-capitalised and experienced team," Roger said in a statement.

The Mariner heavy oil field in the East Shetland region of the North Sea is operated by Norway's Statoil (OL:STL) and is expected to begin production in 2018.

JX Nippon Exploration and Production (U.K.) Limited will retain a 20 percent stake in the field following the deal.

Siccar Point also announced on Tuesday the appointment of former BG Group (L:RDSa) Chief Executive Chris Finlayson as chairman.

The appetite for private equity investment in the sector fell sharply after oil prices started to slide two years ago. But recent signs of a rebound in prices, coupled with abundant assets on sale around the world, have revived their appetite.

Private equity funds such as Carlyle Group (O:CG) and CVC Partners have all set up management teams in recent years to acquire and manage oil and gas assets.

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