Ancala Completes UK Infrastructure Deal

Ancala Midstream Acquisitions has completed its purchase of Apache's 30.28% stake in the Scottish Area Gas Evacuation (Sage) system and its 60.58% stake in the Beryl gas pipeline for an undisclosed sum, it said November 20. The two formed Sage North Sea, now a 100% subsidiary of Ancala Midstream.

Sage comprises a 323-km, 30-in pipeline and a gas processing terminal at St Fergus, Scotland. Gas is transported through the Sage pipeline and processed in the Sage terminal from nine gas fields, including Beryl and its satellites.

Ancala Midstream CEO Jim Halliday said it was "critical for the commercial future of the North Sea that complex transactions of this type can be successfully concluded. The injection of significant new capital is also essential for the future of the basin. For Ancala Midstream this investment provides a platform for further growth in the sector.”

Ancala has also appointed Wood as its operating partner.  Wood will undertake operations on behalf of Ancala Midstream at the Sage terminal and the Sage and Beryl pipelines.  Apache’s 60 employees at the terminal have transferred to Wood. 

Wood CEO Robin Watson said the contract "strengthened its operating partner portfolio in the UKCS and its commitment is to leverage broad capabilities, differentiated expertise and innovative solutions to deliver safely and efficiently."

The UK upstream regulator Oil & Gas Authority (OGA) said the transaction "clearly demonstrates that ‘right assets, right hands’ is working. We welcome Ancala Midstream’s commitment and the message it sends to the wider investment community.” 

OGA is committed to maximising the economic recovery of oil and gas in the North Sea; an impediment is assets that are not fully used as the owners have other, bigger projects demanding management time and capital. It wants assets to be owned as far as possible by entities that can see more value in them than the present owners and invest accordingly.

William Powell