Noble Group, EIG form energy joint venture

Known as Harbour Energy, the platform will target assets that provide exposure to key supply trends and potential off-take arrangements, with Noble the preferred off-take and marketing partner. EIG will provide management and deal execution support. Linda Cook, formerly of Royal Dutch Shell, has been appointed as managing director at EIG and will serve as CEO of Harbour Energy.

Noble will commit $150 million for a 75% interest in Harbour Energy, with EIG paying $50 million for the remainder. The platform will be funded solely through balance sheet capital from the two firms but they also have equal ownership of a Cayman Islands limited partnership structure that could serve as vehicle for new investors. According to The Wall Street Journal, Noble and EIG want to raise more than $2 billion extra from a few large institutional investors.

"New sources of supply, together with demand growth in Asia, are driving fundamental changes in the energy sector and related trade flows," R. Blair Thomas, CEO of EIG, said in a statement. "By partnering with Noble we believe Harbour Energy will be uniquely positioned to benefit from the established global platforms of each of our firms and capture value both through the ownership and operational improvement of assets and the flow business those assets generate."

EIG is a specialist energy investor with $15.4 billion in assets under management as of March 2014. It has invested over $16.4 billion in more than 290 projects or companies in 34 countries during its 32-year history.

Noble sources bulk commodities - including agricultural and energy products, as well as metals, minerals and ores - from low-cost regions and transports them to fast-growing markets, notably in Asia and the Middle East. The company is 15%-owned by China Investment Corporation (CIC).

Earlier this year, a consortium led by Hopu Investments took a minority position in an agribusiness joint venture set up by Noble and Chinese agricultural conglomerate COFCO Corporation. COFCO paid $1.5 billion for a 51% stake in Noble Agri. The Hopu consortium has a one-third interest in COFCO's acquisition vehicle.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Industrials
• Fundraising
• Buyout
• EIG Global Energy Partners
• Fundraising
• energy
• buyout
• Asia