Apache Sells North Sea Pipe Assets

Apache Corporation, the Houston-based independent, has agreed the sale of its Scottish Area Gas Evacuation (Sage) pipeline and processing assets in the North Sea, according to a statement by investment fund Ancala Midstream Acquisitions, part of UK investment fund Ancala Partners.

Ancala Midstream will acquire Apache's 30.28% stake in Sage and its 60.56% interest in the Beryl pipeline, which connects Sage and the North Sea Beryl field. The deal is expected to complete in 1H 2017.

Subject to completion, Ancala said it would appoint the UK's Wood Group to be its operating partner for the day-to-day operation of the two pipelines. Ancala Midstream's management team will be led by Jim Halliday, who has been appointed its CEO and has over 35 years' industry experience and held senior positions with BP including its vice president of midstream, CFO for its North Sea region, and head of global commercial operations.

Sage's length is 323km and it links the northern part of the UK central North Sea to the Sage terminal at St Fergus, 48km north of Aberdeen. 

Apache had said in early November that it plans to divest non-core assets, after making a major shale gas and oil find in Texas.

Murat Basboga