Wren House Infrastructure agrees to acquire NSMP from ArcLight
North Sea Midstream Partners Limited (“NSMP”) announces today that an affiliate of ArcLight Capital Partners (“ArcLight”) has agreed to sell its entire interest in NSMP to Wren House Infrastructure Management Limited (“Wren House”).
North Sea Midstream Partners Limited (“NSMP”) announces today that an affiliate of ArcLight Capital Partners (“ArcLight”) has agreed to sell its entire interest in NSMP to Wren House Infrastructure Management Limited (“Wren House”). NSMP owns a 67% operated interest in the SIRGE pipeline that transports natural gas from the prolific West of Shetland basin and a 100% operated interest in the FUKA pipeline that transports gas from the SIRGE pipeline and various fields in the Northern and Central North Sea. NSMP also owns a 100% operated interest in the associated St. Fergus Gas Terminal as well as the Teesside Gas Processing Plant (“TGPP”) which processes gas from the Central North Sea and Southern North Sea.
NSMP was formed in 2012 by affiliates of ArcLight, Mike Wagstaff (the former CEO of Venture Production plc) and the senior management of TGPP, including CEO Andy Heppel, with the purpose of investing in North Sea midstream assets. Through this partnership, NSMP successfully integrated its FUKA, SIRGE, and St. Fergus Gas Terminal investments, demonstrated a strong track record of securing new business via long-term contracts, implemented numerous operational initiatives, and helped to bring new fields online, including the Greater Laggan Area, Breagh, and Stella Harrier.
NSMP CEO Andy Heppel said
“We are proud to have worked with ArcLight to successfully acquire and integrate the TGPP, St Fergus, FUKA and SIRGE investments and build NSMP to be the largest independent midstream business serving both the UK and Norwegian sectors of the North Sea. We thank ArcLight for their significant support over the past six years and look forward to working with Wren House in continuing to grow our business and in providing essential gas transportation and processing services to all our customers. The combination of NSMP’s great base business with Wren House’s financial expertise and commitment to operational excellence will be the trigger for continued development of the NSMP infrastructure in the North Sea.”
The transaction, which is subject to merger control clearance, is expected to close in 2018. There will be no changes to either the NSMP management team, or the operation of NSMP’s assets by the px Group, as a result of the change in ownership.