LONDON (Alliance News) - Riverstone Energy Ltd Tuesday said it will be one of three cornerstone investors in new Norway and UK-focused exploration and production company Origo Exploration AS, along with Barclays PLC's natural resources private equity business and Singapore-based investment company Temasek Holdings.
In a statement, FTSE 250-listed Riverstone said it and Barclays Natural Resource Investments will each contribute USD200 million of funding to Origo, while Singapore-based investment company Temasek, which is controlled by the Singapore government, will contribute an additional USD125 million.
The Riverstone commitment comprises USD133 million from Riverstone Global Energy and Power Fund V, and USD67 million from Riverstone Energy Ltd.
According to Riverstone, Origo will acquire exploration licences in the Norwegian and UK continental shelves through farm-ins, licence rounds and focused M&A activity. Riverstone said that Origo plans to participate in the drilling of around 25 exploration wells over the next five years and, where appropriate, bring discoveries towards development and production.
"We are very pleased to partner with one of the most successful exploration teams in the North Sea. Our equity commitment to Origo reflects... our belief in the potential for significant new discoveries in the Norwegian and UK Continental Shelves. The investment also provides additional scale and diversification to REL's asset base," Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone, said in a statement.
Shares in Riverstone were up 1.6% to 919 pence in early trade Tuesday, putting it among the top ten risers on the FTSE 250.