CATS Management Limited (CML) is to acquire a 65 per cent interest in the Esmond Transportation System (ETS), a key piece of established UK Southern North Sea midstream infrastructure.
Andy Hessell, Managing Director of CML commented: “We are delighted to have reached agreement on ETS. Growing our business in the Southern North Sea allows us to diversify our asset portfolio through exposure to an entirely new catchment area with different business dynamics, and to acquire infrastructure that has the characteristics we value.
“Investment in both established and new infrastructure is key to maximising economic recovery and realising the considerable potential of the UK Continental Shelf. We look forward to continuing to collaborate closely with our partners and customers to facilitate and encourage further investment which will support the long-term sustainability of the North Sea.”
ETS comprises a 165 kilometre pipeline that transports gas from fields in the Southern North Sea to the Bacton gas terminal on the North Sea coast in North Norfolk. The pipeline is currently operated by Perenco, as operator of the Trent and Tyne fields.
CML has entered into three sale and purchase agreements with Premier Oil plc (30 per cent), Centrica plc (25 per cent) and Perenco UK Limited (10 per cent).
On completion of the acquisitions, CML will become the operator of ETS and will maintain the existing arrangement whereby Perenco operates the pipeline on its behalf in its capacity as operator of the Trent platform.