Wireline Issue 45 - Summer 2019

as lending and debt facilities did not always come easy for groups like Verus, with Alan recalling a year or two spent in search of a banking partner during the worst of the downturn (a role ultimately filled by Nedbank). For Zennor, there was some wariness during its early engagement with infrastructure partners – Martin characterises the past (mis)perception of the company as “private equity wide-boys” – all of which was laid to rest once the team had demonstrated its subsurface expertise. The faith in that expertise also led Zennor to conduct its own analysis in projects where it believed partners had missed opportunities – proof, if needed, of PE’s ability to hone-in on extracting value. “We have some specific examples where a small technical team that’s focused and understands what it’s trying to do can demonstrate to the big boys that improvements can be made,” he continues. “We can’t always influence

boepd worldwide over the next two to three years – more than half its current 160,000 boepd. Like Verus, however, Neptune is not after production at any cost. “We want to get things done, we’re serious and we’ve got the cash to do it, but we’re not going to do things for the sake of it… There are a lot of portfolios up for sale at the moment, but they would have to fit in, they have to provide balance to the portfolio.” While the company could potentially push towards 200,000 bpd in the medium term, it is in no hurry to raise output to meet shareholder commitments alone. “It’s a delicate balance as a business grows,” he notes. Building trust All three companies have also had to work to prove their legitimacy in the eyes of an industry known for its conservatism. Even with the backing of well- regarded private equity houses, financial support such

Above: Western Isles, in which Verus holds a 23% interest, produces from the Harris and Barra fields. It involves a subsea development of production and water injection wells tied back to the FPSO vessel, pictured here. Image courtesy of Dana Petroleum

w ire lin e | S u mm e r 2 019 | 3 3