Blackstone pulls out of SE Asia energy platform
The Blackstone Group has terminated an $800 million commitment to develop oil and gas assets in Southeast Asia with Malaysia-based Tamarind Energy.
The decision, first reported by The Wall Street Journal and since confirmed by AVCJ, was made in August as a result of difficulty securing attractive deals in the region. It is understood that none of the agreed capital commitment has been deployed.
The deal represented Blackstone's first investment in Southeast Asian oil and gas when the transaction was announced in mid-2014. It was interpreted at the time as a strong show of interest in the region following the opening of the US-based firm's Singapore office the prior year.
The plan was for Tamarind to seek partnerships with the national oil companies that dominate the region's energy industry in order to meet growing demand. This effort was to include a focus on Indonesia, Malaysia and Vietnam.
Southeast Asia has been an attractive destination for private equity firms in the energy space despite challenges related to competition from state-owned companies and independents in the region. Recent activity includes KKR making an undisclosed investment in Singapore's Mandala Energy and First Reserve paying $166.3 million for an 80% stake in a Singapore-flagged oil tanker operating off the coast of Vietnam.
Last month, Simmons Private Equity acquired Malaysia's Leap Energy for an undisclosed sum as the first step in a plan to establish a global upstream consulting group.
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