Noble Group Ltd., Asia’s largest commodity trader by sales, formed an energy venture with private-equity firm EIG Global Energy Partners LLC to invest in assets worldwide.
The venture, Harbour Energy Ltd., will own and operate energy extraction and processing assets, with Noble the preferred buyer and re-seller of its products, the venture partners said today in a statement. Harbour Energy will be funded solely by Noble and EIG, the companies said.
Noble has been moving away from full control of commodities or energy assets, instead favoring investments in firms that manage such businesses. The Hong-Kong based company’s strategy means it can secure raw materials for resale without being committed to the running of a mine or oil field.
“This transaction represents a significant milestone in the continued implementation of Noble’s ‘asset light’ strategy, exploiting our best in class expertise in logistics and supply chain management, while partnering with market leading asset managers and owners,” Noble chief executive officer Yusuf Alireza said in the statement.
In September, Noble and private-equity firm TPG agreed to invest a combined $1billion in X2 Resources, a firm started last year by former executives of mining firm Xstrata Plc. Noble, whose shareholders include China’s sovereign wealth fund, is also selling control of its agricultural unit to the nation’s Cofco Corp.
Harbour Energy will be initially funded with $150million from Noble and $50million from EIG, before raising at least another $2billion from “a few” institutional investors, the Wall Street Journal reported today, citing an unidentified person familiar with the matter. The venture may list in the next few years, the newspaper said.
Stephen Brown, Noble’s head of investor relations, couldn’t be immediately reached for comment by phone or e-mail.
Linda Cook, a 29-year veteran of Royal Dutch Shell Plc, will be chief executive officer of Harbour Energy. Cook, 56, will also be a managing director of EIG, the companies said.
EIG will manage the venture and help oversee its acquisitions, the companies said.
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