Two former directors of Cairn Energy have raised backing of up to £316million to start a new oil company in India.
Mike Watts and former Cairn managing director Jann Brown have joined forces to launch a new India-focused upstream oil and gas company, Magna Energy.
Investment giant Carlyle Group said it had made an initial commitment of £158million, and would invest a further £158million, depending on projects brought by the company, and approvals by Carlyle’s investment committee.
Mr Watt, who stood down as deputy chief executive of Cairn Energy last year, has been credited with the Edinburgh-based explorer’s Indian drilling successes. Alongside company founder Sir Bill Gammell, Mr Watts oversaw Cairn’s Rajasthan finds which saw the firm go from a small independent to a FTSE-100 oil explorer and producer.
Carlyle said the investment through Carlyle International Energy Partners – a fund that aims to invest in oil and gas exploration and production outside North America – was its first large-scale energy commitment in India.
Magna Energy aims to become a full-cycle oil and gas company through acquisitions and licensing rounds in the Indian sub-continent.
Mr Watts said the company would also look at other options to build acreage, including asset purchases, farm-ins and even company acquisitions.
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