HitecVision has sold its portfolio company CapeOmega, a Norwegian oil & gas and midstream infrastructure company, to Partners Group in a transaction that values CapeOmega at about EUR 1.2 billion ($1.35 billion).
Partners Group is a global private markets investment manager.
Formed in 2015, CapeOmega holds significant stakes in some of Norway’s key midstream infrastructure: Gassled, the world’s largest offshore gas transmission system, covering about 25% of Europe’s gas demand; Nyhamna, one of three key gas processing plants in Norway; and Polarled, a 480 km pipeline that runs from the Aasta Hansteen field to Nyhamna.
The Norwegian gas transport system Gassled consists of 8000 km of pipelines, offshore riser platforms, onshore processing facilities and receiving terminals in four European countries.
Gassled is a joint venture established on January 1, 2003, and its owners are Petoro, Solveig Gas Norway, CapeOmega, Silex Gas Norway, and Equinor. It is worth mentioning that, earlier this month, HitecVision increased its ownership in the Norwegian offshore gas pipeline system Gassled through the acquisition of Solveig Gas. The purchase price was estimated to be over $1 billion.
Nyhamna in Aukra municipality in Møre and Romsdal is one of Northern Europe’s largest gas terminals and it is the terminal for gas from Ormen Lange. The Aasta Hansteen field offshore Norway, which started production in December 2018, is the second field linked to Nyhamna. After a considerable upgrade the facility is capable of handling gas from other fields in the Norwegian Sea connected to the Polarled pipeline.
The Polarled pipeline consists of 480 km of pipelines and goes from the Aasta Hansteen platform to the Nyhamna gas processing facility.
Late-life oil fields
CapeOmega also holds stakes in three late-life oil fields: Brynhild, Enoch, and Oselvar.
The Lundin-operated Brynhild field, where CapeOmega has a 49% interest, is located in PL 148 in the North Sea offshore Norway. This subsea development consists of a four slot template, with two production wells and two water injection wells, which is tied back to the Pierce field in the UK sector.
The Repsol Sinopec-operated Enoch field is located in the North Sea. The Enoch field is a cross-border hyrdocarbon accumulation located in part in the United Kingdom Continental Shelf (P219) and Norwegian Continental Shelf (PL 048D). The development is a subsea tie-back to the British Brae field.
The Faroe-operated Oselvar field is a subsea development with three horizontal wells placed in the oil leg. The production is sent to the Ula platform where the gas is separated and injected in the host field reservoir, while the liquid is sent to Teeside via Ekofisk.
The Norwegian ContinentalShelf, which supplies around 27% of Europe’s gas demand, has the largest gas reserves and resources in the North Sea, with only one third of the resources in production.
In a separate statement on Tuesday Partners Group said it will work closely with CapeOmega’s management team, led by CEO Gisle Eriksen, to further expand in offshore infrastructure and related assets, with a focus on greenfield developments and brownfield acquisitions.
Esther Peiner, Managing Director, Private Infrastructure Europe, Partners Group, states: “Natural gas is increasingly adopted as a complementary fuel source to renewables in the context of the retirement of coal-fired and nuclear power plants across Europe, and the NCS is poised to benefit from this demand tailwind. Partners Group welcomes the opportunity to partner with a well-respected and experienced management team to realize the associated infrastructure expansion potential for CapeOmega in one of Europe’s key natural gas supply hubs.”
Offshore Energy Today Staff
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