Blackstone scraps Southeast Asian energy venture

Photo: Bloomberg

Private equity major Blackstone Group LP has closed its Southeast Asian energy venture named Tamarind Energy, in which it had committed $800 million.

According to a report  by Wall Street Journal citing sources, the move comes as a result of the venture not finding attractive deals in the region.

In 2014, Blackstone had committed $800 million in Malaysia-based oil and gas exploration company Tamarind Energy Ltd, formed by former executives of Canada’s Talisman Energy.

It was established to look for investments in the energy space in Southeast Asia. Tamarind was meant to focus on growing production and reserves from active oil and gas fields, efficiently developing discoveries and capturing exploration potential in and around proven plays to build a high-quality portfolio.

As per the sources quoted by Wall Street Journal report, the two parties–Blackstone and Tamarind Energy– split in August and the funds were not deployed.

Tamarind Energy Chief Executive Ian Angell  said that after ending the partnership with Blackstone, he continues to operate the company as Tamarind Management Sdn Bhd. He also said, that Tamarind Management has secured new funding, but declined to disclose the new backers.

Last year, it was reported that Tamarind Energy was one of the prospective buyers for assets in Australia’s Santos Ltd, which could have been valued at up to $750 million. However that did not materialise.

Oil prices fell sharply in 2014 leading to hopes that it would lead to a surge in the number of deals in that space attracting many non-energy players in the oil and gas sector. However, the growth has not been as robust as expected, with many sellers waiting for the prices to rise again rather than selling their assets at low rates.

The news report said that though Tamarind’s executives brought a number of potential deals to Blackstone, they were unable to clinch them.

KKR-backed Mandala Energy, a venture similar to Tamarind energy, has also signed deals amounting to less than $200 million in Southeast Asia since it started operations in March 2015.

Also Read: Malaysia’s Tamarind Energy eyes Australia-based Santos’ O&G assets worth up to $495m

 

 

 

 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.