Carlyle commits $500m to South Asia energy platform

The company, Magna Energy, was set up in 2013 as a passive investment vehicle by Mike Watts and Jann Brown, who until last year served as deputy CEO and managing director of listed oil and gas exploration and production (E&P) specialist Cairn Energy. They have a combined 60 years' experience working in the oil industry, including 30 years in South Asia.

The objective is to create a full-cycle oil and gas company through acquisitions and local licensing rounds, combining the founders' expertise with Carlyle's capital and industry knowledge. The equity commitment comes from Carlyle International Energy Partners (CIEP), which focuses on E&P, production, midstream, and refining and marketing in Europe, Africa, Latin America and Asia.

"We are pleased to partner with Jann Brown and Mike Watts, who have a long history of success in the Indian Subcontinent. CIEP will provide capability and support through its global energy platform as we seek to participate in the economic growth of India and neighboring countries," Marcel van Poecke, managing director and head of CIEP, said in a statement.

This is not the first time a private equity firm has sponsored the formation of an oil and gas investment platform in Asia. Last year, The Blackstone Group committed up to $800 million to Tamarind Energy, which works with oil companies in Southeast Asia to increase yields and reserves from fields where yields are in decline.

Before that, 3i supported independent E&P start-up Pearl Energy, which subsequently listed in Singapore and then was acquired by an entity controlled by the Abu Dhabi government. The Pearl team went on to form KrisEnergy, securing backing from First Reserve and going public in Singapore in 2013.

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• Topics
• Industrials
• Expansion
• South Asia
• The Carlyle Group
• energy
• Commodities
• India
• Asia
• Growth capital