Alfa Group establishes international oil and gas investment vehicle, appoints advisory board

Alfa Group

L1 Energy has been established as the global oil and gas investment vehicle of Alfa Group, one of Russia's privately held investment companies.

L1 Energy is part of LetterOne Group, Alfa Group's new international corporate investment vehicle, which will also include the group's telecommunications assets as well as its financial assets resulting from the sale of its stake in TNK-BP.

An L1 Energy international Advisory Board has been formed comprising:

  • Lord Browne, partner at Riverstone and previously group chief executive of BP plc (1995 to 2007);
  • Andrew Gould, chairman of BG Group and previously chairman and CEO of Schlumberger (2003 to 2012);
  • Jim Hackett, partner at Riverstone, former executive chairman of Anadarko Petroleum Corp. and its former CEO (2003 to 2012);
  • Stan Polovets, chief executive of the Alfa-Access-Renova Consortium (AAR), former 50% shareholder in TNK-BP.

The Board will advise on L1 Energy's overall strategy, potential investment opportunities as well as review post-investment performance and governance.

On behalf of all the Advisory Board members Lord Browne said: "L1 Energy is well positioned to capitalize on a wide variety of oil and gas opportunities throughout the world. Its unique combination of value creation track record, M&A expertise, permanent structure and access to capital makes L1 Energy a highly attractive partner for ambitious management teams."

L1 Energy is headquartered in London with a mandate to identify, execute and manage long-term significant investments in exploration & production, oilfield services, infrastructure and other energy projects. It has access to a permanent capital fund for full acquisitions or strategic shareholdings to accelerate development through the provision of finances or deployment of its expertise.

The chief executive of L1 Energy will be German Khan who is in the process of assembling an international management team. He is a principal and member of the Supervisory Board of Alfa Group and was the executive director of TNK-BP from its inception in 2003 until March 2013.

Stan Polovets will serve as Lead member of the Advisory Board with responsibility for managing the relationship between the board, management and shareholders. He will be based in New York City.

Alfa Group was a 50% shareholder in the AAR Consortium. In March 2013 the AAR Consortium completed the sale of its 50% shareholding in TNK-BP to Rosneft for a consideration of $28 billion).

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