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.