Craig Pennington, Managing Partner, Oxford Energy Partners
How did you come to be in the energy industry?
Having spent over 24 years investing in and analysing energy companies I became interested in putting that experience to work. The oil price downturn was the cyclical ‘nudge’ to get on and do it.
What do you believe is the greatest challenge to our industry’s future growth?
Developments in battery technologies.
Where do you see the greatest opportunity in today’s global energy markets and how are you positioned to capture this opportunity?
Commercial, largely de-risked pre-development opportunities that are stalled due to the failure of the industry’s risk sharing model. At OEP we are focussed on the high return potential offered by taking direct interests in such assets.
If you could wave a magic wand over our industry, what would you change and why?
Introduce capital discipline and a universal focus on returns through the cycle.
What are the strategic priorities for your company in the next 12 months?
To complete the financing process and execute the first wave of asset transactions. We are already advanced on both.
What differentiates your company from similar companies working in Asia Pacific?
We are solely returns focused and have a non-operated model. We maximise financial returns working with good, safe and reliable operators to the benefit of all interested parties.
How would you describe your company in one sentence to a new client/partner/investor?
OEP brings over 100 years of relevant technical, operational, financial, management, investment & business development experience in SE Asia to unlock value and target annual returns of 30-40%.
What takeaways would you like attendees at our Asia Pacific Assembly to go home with regarding your company and your work both in Asia Pacific and further afield?
OEP is the only company in the region with a strategy focused on unlocking value from stalled assets, driven by returns.
What is your proudest work-related achievement to date?
A long-term record of outperformance is nice to have, but building a business that invests in jobs, bringing energy to communities that need it will hopefully be my proudest moment.
What one businessman/woman do you most admire and why?
Ben van Beurden, CEO of Royal Dutch Shell for having the drive and vision to secure BG Group during the downturn. This brought scale in both Brazil and LNG but equally important provided a catalyst to shake up Shell.
What advice would you pass onto a recent graduate wishing to work in the energy industry?
Don’t be dissuaded by poor green energy credentials. Hydrocarbons will be an essential part of life for years to come.
All-time favourite book?
Touching the Void by Joe Simpson
All-time favourite film?
About Craig Pennington
Craig Pennington is Co-Founder and Managing Partner of Oxford Energy Partners LLP, an acquisition vehicle targeting equity interests in high-quality oil & gas fields. OEPs initial focus is South East Asia, where proprietary screening and detailed due diligence has highlighted the best opportunities, especially in gas development assets.
Craig has spent 25 years in Oil & Gas investment, working initially at UBS Investment Bank in London and Hong Kong. In Investment Management Craig has a track record of long-term outperformance and is consistently top-ranked in surveys of the European Investment Management Industry. He has been Senior Portfolio Manager and Analyst covering Global Energy at Schroders, Insight Investment and T. Rowe Price.
Craig qualified as a Chartered Financial Analyst in 2001 and has an MPhil in Economics from the University of Oxford.