15th March 2016
North Sea Midstream Partners Limited (NSMP) is pleased to announce that it’s subsidiary, NSMP Operations Limited, has today completed the acquisition of Total E&P UK’s interests in the FUKA and SIRGES pipelines and the St. Fergus Gas Terminal. This concludes the purchase of these assets which was agreed on 27th August 2015 as previously announced.
With the completion of the sale NSMP owns and operates the St. Fergus Terminal and the 362 km, 30” FUKA gas pipeline which serves some 20 fields in the Northern North Sea both in the UK and Norwegian sectors. In addition, NSMP will own a 67% operated interest in the Shetland Island Regional Gas Export System (SIRGES), a 234 km, 30” gas pipeline connecting the recently commissioned Shetland Gas Plant to the FUKA pipeline, alongside partners DONG E&P (UK) Limited (18.3%), OMV (UK) Limited (7.5%) and Chevron North Sea Limited (7.2%).
Day-to-day operations of the pipelines and the St. Fergus terminal will be managed by px Group on behalf of NSMP, building on a long standing relationship at NSMP’s Teesside Gas Processing Plant. As a result 73 members of Total E&P UK staff and contractors, who either work at the St Fergus terminal or are Aberdeen based mid-stream specialists, have transferred to the px Group, with those who are Aberdeen based now located alongside NSMP staff in a new office in the Altens area of Aberdeen.
NSMP Chief Executive, Andy Heppel, said
“We are very pleased to have concluded this important acquisition which significantly grows our business. We believe that the ownership of critical midstream infrastructure by independent and focussed specialists like ourselves can help maximise the ultimate economic recovery of the UKCS’s remaining oil and gas reserves. We look forward to working with px Limited to continue to provide a safe, reliable and cost effective gas transportation and processing service for our customers and partners. We also thank TEPUK, its staff, contractors and the numerous third parties involved for their support in concluding this transaction.”