Delivering the Difference - Oil, Gas & Power

Recent portfolio activity

Deal type: Start-up/Growth Capital, Trade sale to Venture Production
Value: €224m
IRR: 105%

The business
CH4 Energy was a privately-owned UK-based exploration and production business focused on the southern North Sea gas basin where it holds an operating interest in the Markham and the Chiswick fields. It also holds interest in the ETS pipeline system in the southern North Sea.

In a short space of time CH4 developed a diverse portfolio of infrastructure, exploration, development and production assets.

3i participation
3i originally invested start-up capital of €1.2m in CH4. In July 2003, we invested a further €1.9m to fund a 25% interest in the ETS gas pipeline in the southern North Sea. We then provided third round funding of €6m in May 2004 to support the €52m acquisition of ENI’s 37% operating interest in Markham, the producing offshore gas field installation.

Working closely with the management team, we ran a competitive auction process which resulted in CH4 being acquired by Venture Production plc for €224m in August 2006. The deal, a mixture of cash and Venture shares, provided 3i with a return of more than 100% and a money multiple of 7.3 times our original investment. Venture Production was also founded by 3i, where we were pivotal to the early development of the business.

Why 3i?
“We’re very proud of what the CH4 team has achieved with 3i’s help and are pleased that Venture will be taking our vision forward. The fit with the Venture portfolio is excellent in terms of both geography and people.”
Mark Routh, former joint Managing Director, CH4 Energy



Deal type: Buyout from Heerema Group and Wilhelmsen Group
Value: €537m

The business
Dockwise is the market leader in heavylift transportation for the marine and oil and gas industry with a versatile fleet of 15 semi-submersible vessels.Dockwise offers clients unparalleled flexibility and transport capacity on even the most complex of marine oil and gas projects.

3i participation
In December 2006, 3i acquired Dockwise Transport NV in a deal valued at over €537m from Heerema Group and Wilh Wilhelmsen. Our oil and gas industry expertise, combined with our Dutch team’s strong local position, was a decisive factor in winning the confidence of the Dockwise management team.

We are attracted by the continuing growth prospects for Dockwise in the oil and gas sector. It is a well recognised brand and has a team of top quality people.

Why 3i?
“This is an exciting time for Dockwise. The Heerema Group and the Wilhelmsen Group have been supportive shareholders in the company, but 3i brings oil and gas experience that will help us implement our strategy and build our business within the oil and gas industry.”
André Goedée, CEO, Dockwise



Deal type: Growth Capital, Investment
Value: €30m

Electrawinds is the leading independent renewable energy company in Belgium with further operations in Italy. It currently has 45MW of installed capacity in wind and biomass energy. Since its formation in 1998, Electrawinds has invested a total of €100m in renewable energy projects.

3i participation
In December 2006, we acquired a minority stake in Electrawinds to help it develop new energy projects in Europe. With a presence in Portugal, Greece, Romania, Bulgaria and Africa it is looking to build capacity in a number of these countries. Over the coming year, Electrawinds will invest a further €100m in new projects.

3i is attracted to Electrawinds for three reasons: strong and experienced management, growth prospects in renewables energy and the quality of Electrawinds’ development pipeline.

Why 3i?
“We are delighted to welcome 3i as a partner. Their sector contacts and geographic network will be invaluable to us as we become a leading player in the European renewable energy market.”
Luc Desender, CEO, Electrawinds



Deal type: IPO
Value: €311m initial market capitalisation

Founded in 2005, Salamander is an independent exploration and production business focused on oil and gas assets in Southeast Asia where it has built an exciting portfolio of development and exploration assets. Salamander has proven plus probable reserves of 40.2 mmboe. The company is forecasting to produce 8,000 boepd in 2007.

3i participation
We invested €17.2m for a 15% stake in September 2005 to help the company build a portfolio of E&P assets, including producing oil and gas properties in Indonesia and Thailand.

In November 2006, Salamander listed on the London Stock Exchange, raising €152m of additional capital with 3i continuing to hold all of its equity.

Why 3i?
“3i’s backing and knowledge of Southeast Asia has been a great help in successfully floating the company on the London Stock Exchange. This is a key step in allowing the business to achieve its growth aspirations.”
James Menzies, CEO, Salamander Energy



Deal type: Growth Capital, Trade sale to M-I Swaco
Value: not disclosed

Epcon Offshore AS is the leading provider of produced water treatment systems for the oil and gas industry.

3i participation
We originally invested in Epcon in November 2004. During our involvement we helped Epcon strengthen the management team, develop a marketleading position in the North Sea, win a number of multi-million dollar contracts and enter new international markets. When we sold our share in February 2006 Epcon had grown to 3.5 times its
original value.

Why 3i?
“3i has been a fantastic partner and has used its network to introduce both management and business opportunities to us.”
Arne Aune, CEO, Epcon

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