Ancala Midstream Acquisitions has completed a deal to buy Apache’s interests in two North Sea pipeline systems.
The deal gives Ancala Midstream stakes in the Scottish Area Gas Evacuation (Sage) System and the Beryl Gas Pipeline.
The company appointed Aberdeen oil service firm Wood as its operating partner on Sage and Beryl.
Wood will manage the day-to-day running of Sage as part of a multi-million dollar contract.
Ancala bought 100% of Sage North Sea, which held Apache’s 30.28% share of Sage and 60.58% of Beryl.
Sage is made up of a 200-mile long pipeline and a gas processing terminal located at St Fergus near Peterhead.
Gas is transported through the Sage pipeline and processed in the Sage Terminal from nine gas fields, including the Beryl Field and its satellites.
Ancala Midtream was set up by Ancala Partners, an independent mid-market infrastructure investment manager, as a platform to make and manage investments in North Sea midstream oil and gas infrastructure.
Ancala Midstream chief executive Jim Halliday said: “We are 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.”
Tom Wheeler, regulation director at the Oil and Gas Authority, said: “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.”
Wood chief executive Robin Watson said: “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.
“We have established a close partnership with Ancala Midstream, using our four decades of North Sea experience to support the smooth and successful transition of asset ownership and operatorship, and we welcome the St Fergus-based team to Wood today.”
