Published June 18, 2009

Guided by old hands, Temasek energy unit hunts for targets

Orchard Energy to disclose oil, gas E&P assets Temasek plans to buy

By RONNIE LIM

	Email this article
	Print article
	Feedback

(SINGAPORE) Coming soon - news of oil and gas exploration and production (E&P) assets that Temasek Holdings intends to acquire. At least that's what Orchard Energy, the Singapore investment company's E&P subsidiary, promises in its just-established website.

But with a strong management team of experienced oilmen now in place, plus 'old hands' from Shell and ExxonMobil on its board, Orchard Energy (OE) - first set up a year ago in April 2008 - looks set to deliver.

Besides, Temasek - which has hired BHP Billiton's former boss Chip Goodyear as its chief executive officer from October - now seems to be pushing for resource investments (as a counter to its financials-heavy portfolio) as evidenced by its recent $437.5 million investment in listed commodities supplier Olam International.

Tony Tan, a veteran with 30 years of E&P experience - as BT first reported in March - now helms OE as its CEO, having crossed over from Singapore Petroleum Company where he previously headed its E&P operations and acquisitions.

And OE now seems to have a full-fledged management team comprising ex-SPC commercial and financial officials, as well as an experienced group of engineers and geophysicists, who had previously worked mainly in Chevron and Unocal Corporation - such as Greg Solomon, OE's Ventures director, Lawrence Duhon, its principal petroleum engineer and Michael Hursey, its chief geophysicist.

The team also includes ex-Unocal official Ronald Frederik, who has more than 15 years of experience in Indonesia and the US and who is now OE's chief representative for Indonesia.

Indonesia, in fact, is one of OE's main focus areas in the Asia-Pacific region, with the other countries targeted being Vietnam, Malaysia, Thailand, Australia and China.

Overseeing OE is its board of directors led by chairman Philip Eng, who counts deputy chairmanship of MCL Land Limited among his many other positions.

It also includes old industry hands here such as former ExxonMobil official Koh Kheng Siong and ex-Shell man Tan Ek Kia who was senior executive vice-president for Shell's petrochemicals business in the Asia-Pacific and Middle Region until September 2006, and who was among those behind Shell's latest US$3 billion petrochemical complex currently under construction on Jurong Island.

Other directors are Dr Tan and two Temasek officials Tan Suan Swee (managing director, Investments) and Wong Heng Tew (advisory director).

'We will grow our business through acquisition of producing assets and exploration acreage that offer sustainable shareholder value,' OE said in its website.

'Operated ventures will be in a few key geographic areas, initially in Asia-Pacific, and non-operated ventures in areas of high resource potential with strategic partners.'

The company also said that it intends to build a profitable and global E&P company 'through a balanced portfolio that focuses on favourable low-medium risk basins; invests for upside returns and effectively manages risk'.

This also includes developing 'excellent relationships with national oil companies and regional governments.'