The Carlyle Group (NASDAQ: CG) is committing an equity line up to $500 million in Magna Energy Ltd., an upstream oil and gas company co-founded and led by two former Cairn Energy executives, Mike Watts and Jann Brown.
Magna is targeting the building of acreage positions in the Indian subcontinent, with the objective of creating a full-cycle oil and gas company through acquisitions and local licensing rounds. Magna’s primary focus will be development and production with a secondary focus on exploration.
Funding for the investment will come from Carlyle International Energy Partners (CIEP), a fund that focuses on oil and gas exploration and production, midstream, and refining and marketing in Europe, Africa, Latin America, and Asia. Carlyle said June 22 that the CIEP investment in Magna Energy was its first large-scale energy commitment in India.