Ancala Midstream completes acquisition of interest in Scottish Area Gas Evacuation system
Ancala Midstream Acquisitions Limited (“Ancala Midstream”) today announces that it has completed its acquisition of Apache’s interests in the Scottish Area Gas Evacuation (“SAGE”) System and the Beryl Gas Pipeline for an undisclosed sum. Ancala Midstream has been appointed as operator of both systems.
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.”
Notes to Editors
About Ancala Partners
Ancala Partners is an independent infrastructure investment manager founded in 2010.
Ancala launched its UK Mid-Market Infrastructure Platform in February 2016 to meet the requirements of long-term investors looking for enhanced returns from core mid-market infrastructure investments in the UK. Ancala now has over £800 million in funds under management (as at April 2017).
Ancala’s highly-experienced team has a proven track record in originating, executing and managing mid-market infrastructure investments.
The investment team combines experienced infrastructure investors with operational leaders who have a proven track record of de-risking businesses and improving cashflow through pro-active asset management, thereby protecting and enhancing returns. Ancala’s senior partners are market and industry veterans with over 200 years’ experience.
A strong network at senior levels with corporate and market participants enables Ancala to pro-actively source investment opportunities and generate a strong pipeline of bespoke investment opportunities in the UK and Europe.
Ancala is based at 40 Gracechurch Street, London, EC3V 0BT.
For more information, please visit www.ancala.com
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google’s Play store.
About Wood Group plc
Wood is a global leader in the delivery of project, engineering and technical services to energy and industrial markets. We operate in more than 60 countries, employing around 55,000 people, with revenues of over $11 billion. We provide performance-driven solutions throughout the asset life cycle, from concept to decommissioning across a broad range of industrial markets including upstream, midstream and downstream oil & gas, chemicals, environment and infrastructure, power & process, clean energy, mining, nuclear and general industrial sectors. We strive to be the best technical services company to work with, work for and invest in.
About the Oil & Gas Authority
The Oil and Gas Authority’s role is to regulate, influence and promote the UK oil and gas industry in order to maximise the economic recovery of the UK’s oil and gas resources. It seeks to be a progressive and highly effective authority, doing all it can to attract investment and with that jobs, helping to anchor valuable skills and expertise in the UK. Created as one of the key recommendations of Sir Ian Wood’s 2014 Review of the UKCS, the OGA became an Executive Agency on 1 April 2015, which created operational independence from DECC (now the Department for Business, Energy and Industrial Strategy) to the fullest extent possible within the established boundaries, and gave it direct accountability for exploration and development decisions and approvals. On 1 October 2016 it became a government company, limited by shares under the Companies Act 2006, with the Secretary of State for Business, Energy and Industrial Strategy the sole shareholder. The OGA is largely funded by an industry levy introduced on 1 October 2015. It is headquartered in Aberdeen with another office in London.