Kuwait SWF to Purchase North Sea Midstream Partners Limited

Posted on 07/23/2018


Wren House Infrastructure Management, the internal infrastructure unit of the Kuwait Investment Authority (KIA), signed an agreement to acquire the oil and gas pipeline firm North Sea Midstream Partners Limited for approximately 1.3 billion GBP. The seller of the firm is ArcLight Capital Partners, LLC. Other bidders for the company include Blackstone Group, KKR and JPMorgan. North Sea Midstream Partners was created in 2012 by affiliates of ArcLight Capital Partners LLC, Mike Wagstaff (the former CEO of Venture Production plc) and the senior management of Teesside Gas Processing Plant Limited (including CEO Andy Heppel) to invest in the midstream sector of the North Sea’s oil and gas industry.

North Sea Midstream Partners owns a 67% ownership stake in the Shetland Islands Regional Gas Evacuation System (SIRGES) pipeline that transports natural gas from the West of Shetlands basin. The holding company also owns a 100% interest in the FUKA pipeline which transports gas from the SIRGE pipeline and various fields in the Northern and Central North Sea. In addition, North Sea Midstream Partners owns the St. Fergus Gas Terminal and Teesside Gas Processing Plant. North Sea Midstream Partners owns a piece of the Rhum gas field, in the North Sea and which is 50% owned by the Iranian Oil Company.

Advisors

The financial advisor for ArcLight Capital was Bank of America Merrill Lynch, while the legal advisor was Freshfields Bruckhaus Deringer was its legal adviser. Wren House Infrastructure was advised by Jefferies and Macquarie Capital. Wren House Infrastructure’s legal advisor was Slaughter and May.