California Resources (CRC) has formed a joint venture (JV) with Benefit Street Partners (BSP) that will invest $250m in CRC’s oil and gas properties located in the state.
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The JV will focus on exploring development opportunities in multiple conventional and unconventional assets of CRC in California.
CRC will continue to operate all the properties.
CRC president and CEO Todd Stevens said: “This joint venture is an excellent opportunity for CRC to accelerate development of CRC’s vast underdeveloped resource base and advance our long-term deleveraging efforts.
“We look forward to partnering with Benefit Street Partners for our mutual benefit.”
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By GlobalDataBSP will make an initial $50m investment for drilling activities across properties subject to the JV.
BSP will make subsequent investments in instalments of up to $50m at the discretion of the JV partners over a two-year investment window.
Subject to customary conditions, the companies expect that the initial investment will fund in approximately two weeks.
BSP managing director Tim Murray said: “We are proud to partner with CRC and their quality management team.
“We view CRC’s diverse asset base as an excellent opportunity to structure a joint venture to focus on the primary and secondary development opportunities to enhance CRC’s portfolio.”
BSP is a credit-focused alternative asset management firm, which with its affiliates manages more than $18bn in assets.
BSP is an affiliate of Providence Equity Partners and has approximately 150 employees, with more than 90 investment professionals.
Image: Wilmington Oil Field location where CRC holds significant interest. Photo: courtesy of Antandrus / Wikipedia.
