BP, First Reserve seek technology investment targets

BP PLC and private equity firm First Reserve Corp. said Wednesday they would join forces to seek investment opportunities in small and medium-sized companies aiming to develop technologies in the energy sector. The agreement is designed to give the UK megamajor "broad access" to a range of technologies thought to be valuable to its upstream, midstream, and downstream activities.

March 23, 2001

By the OGJ Online Staff

LONDON, Mar. 23�BP PLC and private equity firm First Reserve Corp. said Wednesday they would join forces to seek investment opportunities in small and medium-sized companies aiming to develop technologies in the energy sector.

The agreement, said BP, would give it "broad access" to a range of technologies thought to be valuable to its upstream, midstream, and downstream activities. For First Reserve, the deal is expected to enhance its ability to identify high-growth investment targets for its funds and portfolio companies.

Under the terms of the deal, BP will "assess and provide advice on the technologies being pursued by the companies, and identify those with the greatest promise to solve its own technical challenges." First Reserve will take equity stakes in the companies.

While the scope of the deal is said to be wide, BP said that it is likely upstream technologies would be the initial focus of the collaboration.

"This is a mold-breaking approach," said Andrew Mackenzie, BP group vice-president for technology. He said it would enable BP to interact with smaller firms to guide and promote key technologies that met BP�s business needs.