Private equity gaining interest in North Sea

High-profile oil and gas executives are teaming up with private equity funds seeking to invest billions in British North Sea assets and maximise profits by cutting costs, offering the ageing basin a badly needed lifeline.

With an estimated $10b in their war chests, large funds including Riverstone Energy, Carlyle Group and Blackstone are in talks to buy producing assets or invest in struggling exploration and production companies, several bankers and industry sources said.

The funds are hiring high-profile executive teams who will use their experience to drive costs lower by introducing savings and slash contractor costs at new assets.