Ancala Midstream Buys Apache’s Stake in SAGE and Beryl Pipeline
Ancala Midstream has agreed to acquire Apache’s interest in the Scottish Area Gas Evacuation system (SAGE) and Beryl pipeline.
Ancala Midstream will acquire Apache’s 30.28 percent share of SAGE, and its 60.56 per cent interest in the Beryl pipeline, and intends to appoint Wood Group to be operating partner, subject to the receipt of regulatory and third party approvals.
Wood Group, under the stewardship of Ancala Midstream, will manage the day-to-day operation of SAGE and the Beryl pipeline. Apache’s SAGE personnel will transfer to Wood Group to ensure continuity of service, the company informed.
The transition of ownership and operatorship is expected to complete in the first half of 2017.
The SAGE system transports gas through the 323 kilometer SAGE pipeline between the northern part of the Central North Sea to the SAGE terminal at St Fergus, about 48 kilometers north of Aberdeen, where it is processed on behalf of North Sea gas producers.
Ancala Midstream’s management team will be led by Jim Halliday, who has been appointed as chief executive.
Jim Halliday said: “Our aim in making this investment is to maximize throughput for all producers, extend the life of the system, connect new fields and support efforts to maximize economic recovery in the North Sea for many years to come.
“Our priority through the transition period will be the continued safe operation of the plant and pipeline, regular and transparent engagement with all stakeholders and an efficient hand over of operations from Apache.”
Ancala Midstream is financed through funds managed by Ancala Partners.