Carlyle Group plugs $500m into Magna Energy

The Carlyle Group, the US-based global asset management firm which specialises in private equity, is to invest $500m in Magna Energy to expand its operations in the Indian subcontinent. As the press release notes: “Magna is targeting the building of acreage positions in the Indian Subcontinent, with the objective of creating a full-cycle oil and gas company through acquisitions and local licensing rounds. Magna’s primary focus will be development and production with a secondary focus on exploration.”

The funds for the investment will be drawn from Carlyle International Energy Partners (CIEP)

Magna is a UK-based energy firm, led by industry veterans Dr Mike Watts and Jann Brown who, according to Carlyle Group “have 60 years’ combined experience in the oil industry”. The coming together of the two firms will see “Magna’s expertise combined with additional capital and significant industry knowledge from Carlyle.” According to the press release, the outcome of the deal will be the “develop[ment of] the local oil and gas industry across the Indian Subcontinent, leading to greater energy security, job creation and economic growth”.

The funds for the investment will be drawn from Carlyle International Energy Partners (CIEP), an oil and gas exploration and production fund that also focuses on refining and marketing in Europe, Africa, Latin America and Asia. Managing Director and Head of CIEP Marcel van Poecke and Managing Director Bob Magui will lead the initiative.

Watts and Brown are quoted as saying they are “delighted CIEP has agreed to support the Magna leadership team with a significant equity investment as we seek to build our business across South Asia – a region we both know well. We believe there is strong growth potential in countries such as India, Bangladesh and Myanmar, which seek to grow their local energy markets”.