3i Completes US$250m Lead Investment in Delta Hydrocarbons

3i 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."

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Posted 27/03/07

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