The infrastructure investment fund has acquired SAGE North Sea (SNSL) which holds Apache’s stakes in the two North Sea gas pipeline assets. SNSL will now be operated as a wholly-owned subsidiary of Ancala Midstream.
In the 323km SAGE pipeline system, SNSL holds a stake of 30.28% stake and has a stake of 60.58% in the Beryl Pipeline.
The SAGE system is a 30-inch bore pipeline and a gas processing terminal located at St Fergus in Scotland. Through the SAGE pipeline, gas procured from nine gas fields that include the Beryl Field and its satellites, is transported and processed in the SAGE Terminal.
Ancala Midstream and Apache had entered into the deal for the pipeline assets in November 2016.
Ancala Midstream CEO Jim Halliday said: “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.”
Ancala Midstream was established by infrastructure investment manager Ancala Partners as a platform to make and handle investments in North Sea midstream oil and gas infrastructure.
The investment fund has appointed The Wood Group as the operating partner of the gas pipeline assets. It will carry out operations on behalf of Ancala Midstream at the SAGE Terminal and on the SAGE and Beryl pipelines.
Wood CEO Robin Watson said: “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.”
