11 May 2015
L1 Energy launches in New York
LetterOne, the international investment Group, with total assets of around $25 billion, today launched L1 Energy, its new world-class global oil and gas company, in the US at New York’s Neue Galerie.
L1 Energy’s ambition is to build a new world-class global oil and gas company. It will do this through acquiring and then developing a portfolio of two or three regionally focussed platforms around the world, in which it mainly holds a controlling interest.
L1 Energy are long-term value investors. As active investors, L1 Energy wants to be recognised as an investment partner of choice, because the quality of strategic input it provides, its deep sector knowledge, and provision of permanent capital in order to generate long-term value.
L1 Energy will focus on operational excellence and safety, and have a robust governance and performance management framework. L1 Energy also believes that to be sustainable a business must contribute to society, and priority will be given in the companies it invests in - to the development of local content - such as the workforce, investing in supplier development, and where possible using local businesses.
Efficient production, add on acquisitions and exploration will allow L1 Energy to capitalise on the regional strengths of each platform, enabling them to grow and improve. On 3 March 2015, L1 Energy agreed the purchase of 100% of RWE DEA for €5.0 billion. DEA is an international exploration and production company, headquartered in Hamburg, Germany. DEA currently holds 162 licences in 14 different countries.
Lord Browne of Madingley, Executive Chairman of L1 Energy, said
“I am very excited to be leading this ambitious project. At L1 Energy, we are seeking to build, from scratch, a brand new, international, responsible oil and gas company.
“It will be a company which reflects today’s new reality when it comes to looking after local communities, the environment, and staff. And I expect it to deliver an exceptional return to our shareholders.
“Following our acquisition of DEA, a world-class platform with a long track record of safe and sustainable operations, we are looking to build our company with further expansion around the world.”
Mikhail Fridman, Chairman of the LetterOne Group, said:
“This is a very exciting venture for the LetterOne Group. With L1 Energy, we want to create something new and international, a company that can invest in the best assets globally and draw on the best expertise from around the world.
“As in all our operations, we are committed to doing business in a transparent and ethical way, using the highest standards and working in partnership with the companies and countries in which we invest.”
Notes to editors:
The LetterOne Group is a global investment firm focused on the oil and gas and telecommunications sectors.
- Founded in June 2013, LetterOne was born from the disposal of a 25% stake in TNK-BP to Rosneft in March 2013.
- The LetterOne Group is comprised of two main investment vehicles: L1 Technology, and L1 Energy, which is focused on opportunities in the global oil and gas sector, and both supported by L1 Treasury Services operations.