Asset Buyout Partners to take over Norwegian port and supply base landlord

Asset Buyout Partners (ABP) has agreed to acquire Norwegian port and supply base landlord Mongstad Group from EQT Infrastructure II.

Mongstad Group is an owner of infrastructure and real estate and a landlord to high activity oil and gas supply bases located at the ports of Mongstad and Dusavik, supporting about 30 oil and gas fields in the North Sea.

ABP said last week that the transaction comprised about 1.2 million square meters of land and infrastructure including piping for bulk supply, 120,000 sqm of industrial facilities specialized for oil and gas supply base activities and 800 meters of quays.

Also, there is a combined 370,000 sqm of zoned, undeveloped land that provides expansion opportunities for existing as well as new customers.

According to ABP, Mongstad and Dusavik are hubs for Statoil’s activities in the North Sea and Statoil is the main tenant. Other major tenants include CCB Mongstad, PSW Technology, WellConnection, NOV, Halliburton, North Atlantic Drilling, Archer, GE Oil & Gas, Schlumberger, Halliburton, among others – the majority on long-term lease contracts.

CCB Mongstad also sublets to about 30 subtenants that include major industry names such as Aibel, Baker Hughes, Bilfinger, COSL, Halliburton, KCA Deutag, Songa, Odfjell Drilling, Schlumberger, Wintershall, NOFO, and SAR.

Going forward, ABP will continue to grow by investing in mission-critical oil and gas real estate and infrastructure, leveraging the company’s re-investment capacity.

William W. Wittusen, CEO of Asset Buyout Partners, said: “The acquisition of Mongstad Group is a significant step in the execution of ABP’s game plan. The portfolio improves ABP’s strategic and competitive position by securing a strong presence at two of the main supply bases serving the oil and gas industry in Norway.”

It is worth noting that the parties agreed not to disclose the transaction value. The closing of the transaction is subject to approval by the Norwegian Competition Authority.