Nov 13 Private equity firm Blackstone Group LP
and LLOG Exploration Company LLC will jointly invest $1.2
billion to expand the private offshore oil producer's operations
in the Gulf of Mexico.
Blackstone and other private equity firms have been
investing in the capital-intensive oil and gas industry as the
United States is working towards meeting its energy needs.
The International Energy Agency forecast on Monday that the
United States will overtake Saudi Arabia as the world's top oil
producer by 2017.
LLOG plans to use the funds to develop four recent deepwater
discoveries and to explore more than 110 offshore leases in the
Gulf of Mexico.
The partnership will also expand LLOG's asset base in the
U.S. Gulf through lease sale participation, farm-ins and
LLOG, founded in 1977, is one of the top 10 private oil and
gas companies in the United States with 2011 net production of
20,000 barrels of oil equivalent per day.
New York-based Blackstone will invest from its two private
equity funds, which aggregate over $19.3 billion of committed
capital, including Blackstone Energy Partners.