Statement from the Managing Partners
Oxford Energy Partners (OEP) was founded to target investments in small, economic but stalled oil and gas projects in South East Asia on the basis that unlocking them would release significant value for investors, partner companies and resource-owning governments. South East Asia has seen few asset deals over the past three years despite a large and growing hydrocarbon deficit in the region and, with a recovering commodity price, the OEP business model was broadly supported by host governments.
OEP has been successful in building strategic business development relationships with many local and international players in the E&P and investor communities. The Managing Partners, helped by our Technical Advisors, accessed data rooms to assess investment opportunities identified by our bespoke screening and analytical process, and met regularly with many key regional players.
However, OEP has concluded after evaluating several assets that the investment return profiles fell short of our expectations and were not sufficiently attractive for the Managing Partners to invest their own capital and therefore take to our investors. Opportunities that did appear to be attractive were often held by large resource holders, or small private companies, which are unable or unwilling to transact in reasonable timescales.
While we continue to see opportunities in this region and more globally, we have decided to bring this particular venture to a close. We will revisit our business model and strategy and may return with a different venture with a broader geographical approach in the coming months.
The Managing Partners wish to thank our Technical Advisors for all their hard work on the assets and insight provided in to the region. Many thanks also to Stuart Paton for his counsel on strategy and to our Non-Executive Chairman Ron Aston for providing OEP with the benefits of his extensive network and his experience managing assets and companies. Ron has been hugely important to progress made by OEP. To the senior industry executives who provided advice and guidance to OEP we are very grateful for your generosity.
Finally, thanks to all the investors who followed our progress and took the time to engage with OEP, evaluate our business model and potential investment opportunities. It’s been an interesting, challenging and invaluable experience for us all.