3i completes US$250m lead investment in Delta Hydrocarbons US$1bn fundraising

23 May 2007

3i today announces that it has committed $250m to Delta Hydrocarbons (“Delta”) as part of its US$1 billion fundraising.  Delta is an innovative venture dedicated to capitalise on current industry dynamics in the international upstream oil and gas (E&P) business. 

3i is investing alongside Dyas BV, a subsidiary of SHV Holdings NV, and Upstream Capital Partners, an affiliate of Mercuria Energy Group, who are each committing $250m.

Delta has been founded by a highly experienced management team led by Walter van de Vijver, ex-CEO of Shell Exploration & Production, and Maarten Scholten, previously head of Schlumberger’s Mergers & Acquisitions team, joined by Jeri Eagan as CFO and Frederik Rijkens as Project Director.

With thousands of oil and gas fields around the world producing less than their potential, Delta will collaborate with both National Oil Companies (“NOCs”) and international oil companies (“IOCs”) to enhance the production of mature oil and gas fields.  Under Delta’s business model, the NOCs and IOCs will retain ownership of their assets, with Delta supplying the capital, project design, management and execution of production enhancement projects.

Delta is looking to develop a balanced portfolio of projects across a number of geographies outside North America.  Delta will have the strategic flexibility to consider opportunistic acquisitions as well.

Colin Burnett, 3i Investment Director, commented: “We are excited to be backing a world-class team in the E&P sector.  Delta’s offering is highly attractive to the NOCs and IOCs because it provides an outsourced solution to their need to increase reserves and production with little risk.   We believe that this team has the capability to build Delta into a leading global player in the E&P market.“

Notes to editors

About 3i
3i is a world leader in private equity and venture capital.  We focus on buyouts, growth capital venture capital and infrastructure and invest across Europe, the United States and Asia.  Our competitive advantage comes from our international network and the strength and breadth of our relationships in business.  These underpin the value that we deliver to our portfolio and to our shareholders. 

About 3i Oil, Gas & Power
3i’s Oil, Gas & Power team manages an investment portfolio with a value of $1bn across the UK, Norway, USA and Singapore.  The current portfolio includes Dockwise, the Dutch heavy transportation company; EDP, an oilfield development project manager and Noreco, a Norwegian independent exploration and production company.  Successful realisations include Vetco Gray, which was sold to GE’s Oil & Gas division for US$1.9 billion in January 2007; Petrofac, the international oil and gas facilities service provider, which floated in October 2005; Revus Energy, the independent Norwegian upstream company, which floated in June 2005; and CH4 Energy, a leading exploration and production company, which was acquired by Venture Production plc in August 2006.

For further information please contact:

Kathryn van der Kroft
email. kathryn.vanderkroft@3i.com
tel.  +44 207 975 3021