The Carlyle Group today said it will invest USD 500 million in Magna Energy Ltd, an India-focused oil firm founded by Mikes Watts - the man who saw oil in Rajasthan where Royal Dutch Shell saw none.
Led by Watts and Jann Brown, two former executives of Cairn Energy Plc of UK, Magna Energy Ltd will build "acreage positions in the Indian Subcontinent, with the objective of creating a full-cycle oil and gas company through acquisitions and local licensing rounds," the Carlyle Group said in a statement.
The global alternative asset manager said it is committing an equity line upto USD 500 million in Magna Energy Ltd.
Magna was founded by Watts and Jann Brown after they superannuated from Cairn Energy in April last year.
"We believe there is strong growth potential in countries such as India, Bangladesh and Myanmar, which seek to grow their local energy markets," the two executives said in a statement.
Funding for the Magna investment will come from Carlyle International Energy Partners (CIEP), a fund that focuses on oil and gas investments in Europe, Africa, Latin America and Asia.
"Magna's primary focus will be development and production with a secondary focus on exploration. Magna's expertise combined with additional capital and significant industry knowledge from Carlyle will help further develop the local oil and gas industry across the Indian Subcontinent, leading to greater energy security, job creation and economic growth," the statement said.
Watts and Brown said, "we are excited at the prospect of helping to drive economic growth in the Indian subcontinent by bringing new technology and capital to the local oil and gas sector - India, in particular, is set to emerge shortly as the world's fastest growing major global economy."
Marcel van Poecke, Managing Director, and Head of CIEP, said: "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 neighbouring countries. Our investment will help fund Magna's development and production plans allowing it to focus on cash generative and organic growth opportunities in the oil and gas sector across the subcontinent.
