MOSCOW, June 17 (Reuters) – Billionaire Mikhail Fridman’s Alfa Group will invest $20 billion or more in global oil and gas projects through a new fund it has set up that will be advised by top-ranking former oil bosses, including ex-BP chief executive Lord Browne.
* L1 Energy to invest $10 bln equity, borrow rest
* German Khan to be CEO, recruiting managers
* Looking at 5-6 deals over 3-5 years
* First transaction likely in 2014
* Ex-CEOs Browne, Gould, Hackett join advisory board
The L1 Energy fund will be run by German Khan, a partner of Fridman’s, and will invest the bulk of Alfa’s proceeds from the sale of oil venture TNK-BP this year in what was Russia’s largest-ever takeover deal.
Alfa, which owned a quarter stake in TNK-BP, reaped $14 billion in March when state oil major Rosneft completed the purchase of Russia’s third-largest oil firm. The bulk of that windfall will go into oil and gas deals.
“The shareholders plan to invest around $10 billion in equity over the next 3-5 years in order to build a global oil and gas business,” Stan Polovets, who will be lead member of the L1 Energy advisory board, told Reuters in an interview.
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Alfa Group Sets Up Unit to Invest $20Bln in Oil, Gas
