3i invests to accelerate growth of North Sea oil and gas business, Venture Production Plc
Following the announcement of a strategic partnership between 3i, ArcLight Capital Partners LLC and Venture Production Plc, on 19 July 2007, the company has confirmed completion of the deal with the appointment of two new Non-Executive Directors to its board along with shareholder approval of the £151 million convertible bond financing.
This brings 3i’s investment in Venture Production plc, a leading North Sea focused oil and gas provider, to over £100m. 3i’s specialist Oil, Gas and Power team has invested through a combination of a convertible bond and shares to support Venture Production’s growth strategy within the North Sea.
Graeme Sword, partner with 3i’s Oil, Gas and Power business unit based in Aberdeen joins the board, effective from 24 October 2007. Robb Turner, co-founder of ArcLight also joins the board, effective from 12 September 2007.
Commenting on the appointment, Mike Wagstaff, Chief Executive of Venture said:
“I am delighted that we have now completed the formation of our strategic partnership with 3i and ArcLight, and I am pleased to welcome Graeme and Robb to Venture’s Board. They both bring many years of energy industry experience which will be invaluable as we continue to build Venture. Completion of this substantial investment by two of Venture’s long term financial partners represents a huge vote of confidence in Venture’s business model and strategy, its team and our competitive position within the North Sea.”
Graeme Sword, Partner in 3i''s Oil, Gas and Power team added: "I am delighted to be joining the Venture Production board as part of our further investment in the company. We look forward to working closely with Venture Production to capitalise on the considerable opportunity for investment and consolidation in the North Sea."
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in 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.
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 Advanced Power, which develops power generation stations, Delta Hydrocarbons, an E&P business; Electrawinds, the leading independent renewable energy company in Belgium; 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 plc in August 2006.
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