CNOOC anchors PE fund targeting Asian energy assets

CNOOC and Kuwait Investment Authority (KIA) are cornerstone investors in the fund, with the Chinese firm having committed more than half of the $875 million raised so far, Dow Jones LBO Wire reported, citing prospective investors. Another source said that CNOOC had put in $500 million and KIA had committed the remaining $350 million.

Under the agreement between CNOOC and Kerogen, the oil company will provide consulting and operating services. In return, it will get first look at exits on portfolio companies.

The fund is expected to focus on resource-rich countries in Asia Pacific as well as well as certain nations in Central Asia, including Turkmenistan and Kazakhstan. One potential investor said the fund would look at upstream oil and gas investments.

Concerns have been expressed in some quarters that the presence of CNOOC - China's largest producer of offshore crude oil and natural gas, holding assets in Indonesia, Australia, Nigeria, Argentina and the US - could create conflicts of interest. The company has its own overseas investment agenda, which could influence the prices paid for assets as well as the timing of exits.

Kerogen is largely made up of professionals from Ancora Capital Management, an Indonesia-based private equity firm. Ancora co-founder Ivor Orchard previously served as head of Asian energy and natural resources at JPMorgan, and had dealings with CNOOC.

Last year, CNOOC and Ghana National Petroleum Corp. saw their $5 billion bid for the Ghanian assets of Kosmos Energy rejected by owners Warburg Pincus and Blackstone Group. The private equity firms took Kosmos Energy public in May, raising $594 million.

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• Topics
• Southeast Asia
• Central Asia
• Industrials
• Fundraising
• Ancora Capital Management
• Warburg Pincus Asia
• The Blackstone Group