A London-headquartered infrastructure fund has struck a deal to buy an oil and gas pipeline firm with offices in Aberdeen for £1.3 billion, a news report said today.
Wren House will purchase North Sea Midstream Partners (NSMP) from ArcLight Capital, Reuters reported, citing two sources.
Wren House is the infrastructure investment arm of Kuwait’s sovereign wealth fund, KIA. Its other UK investments include stakes in Associated British Ports (ABP), London City Airport and Thames Water.
It fought off rival bids from JP Morgan, Blackstone, and private equity fund KKR, one of the sources said.
The current NSMP management team, including chief executive Andy Heppel, will keep their jobs, the source told Reuters.
NSMP bought 67% of the Sirge pipeline, 100% of the Frigg UK pipeline (Fuka) and 100% of St Fergus Gas Terminal from French oil giant Total for £583 million in 2015.
Sirge transports natural gas from the west of Shetland basin and Fuka transports gas from various fields in the northern and central North Sea.
NSMP also owns the Teesside Gas Processing Plant.