Ancala Midstream completes acquisition of interest in Scottish Area Gas Evacuation system

Ancala Midstream has been established by Ancala Partners, the independent mid-market infrastructure investment manager, as a platform to make and manage investments in North Sea midstream oil and gas infrastructure. Ancala appointed Jim Halliday as Chief Executive Officer of Ancala Midstream in November 2016.

Ancala Midstream has acquired 100% of SAGE North Sea Limited (“SNSL”) which holds Apache’s 30.28% share of SAGE and 60.58% share of the Beryl Pipeline.  SNSL will operate as a 100%-owned subsidiary of Ancala Midstream.

The SAGE System comprises a 323-kilometre, 30-inch bore pipeline and a gas processing terminal located at St Fergus, 65 kilometres north of Aberdeen. Gas is transported through the SAGE pipeline and processed in the SAGE Terminal from nine gas fields, including the Beryl Field and its satellites.

Jim Halliday, Chief Executive, Ancala Midstream, commented:

“Ancala Midstream is delighted to have closed this important investment in two major pieces of North Sea infrastructure.  It is critical for the commercial future of the North Sea that complex transactions of this type can be successfully concluded.  The injection of significant new capital is also essential for the future of the basin.  For Ancala Midstream this investment provides a platform for further growth in the sector.”

Spence Clunie, Managing Partner, Ancala Partners, commented:

“This investment represents an important step in the growth of our midstream infrastructure platform. We have put in place an experienced management team at Ancala Midstream to lead this strategy.”

Ancala has appointed Wood as its operating partner.  Wood will undertake operations on behalf of Ancala Midstream at the SAGE Terminal and on the SAGE and Beryl Pipelines.  Apache’s 60 employees at the SAGE Terminal have transferred to Wood.

Robin Watson, Chief Executive, Wood, commented:

“We are delighted to be working with Ancala Midstream on these major pieces of infrastructure. This contract strengthens our operating partner portfolio in the UKCS and our commitment is to leverage our broad capabilities, differentiated expertise and innovative solutions to deliver safely and efficiently.”

Tom Wheeler, Director of Regulation, Oil and Gas Authority, expressed strong support for the investment:

“This transaction clearly demonstrates that ‘right assets, right hands’ is working. We welcome Ancala Midstream’s commitment and the message it sends to the wider investment community.”

Mr Halliday concluded:

“The Oil and Gas Authority has supported this investment throughout. We look forward to working with all our partners and stakeholders as we continue to grow Ancala Midstream’s presence.”