Apache offloads North Sea pipeline stake
Oil and gas company Apache is selling its interest in the Scottish Area Gas Evacuation system (SAGE) and Beryl pipeline. The buyer has already lined up Wood Group as the operating partner at SAGE and Beryl.
Ancala Midstream informed on Wednesday it 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 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. The pipeline transports gas from the following fields: Brae, Alvheim, Maclure, Scott, Ettrick, Golden Eagle, Devenick, and Rochelle.
Ancala Midstream’s management team will be led by Jim Halliday, who has been appointed as Chief Executive.
Halliday, Chief Executive of Ancala Midstream 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.”
Ancala Midstream is financed through funds managed by Ancala Partners.
Spence Clunie, Managing Partner of Ancala Partners commented: “Ancala Partners makes long term investments in high quality infrastructure assets in the UK on behalf of UK pension plans. SAGE is a high quality business with a skilled and experienced workforce that fits well with the investment characteristics of Ancala Partners’ mandate.”