Norwegian Private Equity Firms Target North Sea

MarineLink.com
Tuesday, February 04, 2014
Rosalie Chadwick

Cash-rich Norwegian private equity firms are eyeing up potential North Sea acquisitions, encouraged by proven management teams and reasonable market prices, claims a leading energy expert.

Rosalie Chadwick, a partner in legal firm Pinsent Masons, believes the Scots-Nordic alliance will be strengthened in 2014, echoing a number of investments in recent months, but it won’t be one-way traffic.

“There is an increased confidence by Norwegian investors in U.K. oil and gas assets,” explained Chadwick. “The appeal of strong and proven management teams, who are successfully working what are often difficult assets, set against reasonable market prices, is a big pull for Norwegian private equity funds and investors.

“The similarities of both countries and shared experiences of exploring and developing the North Sea has created a strong platform for cross-border investment and I see that trend continuing over the next few years.”

Last September Stavanger-based private equity firm HitecVision committed $150 million to support new start U.K. exploration business Oyster Petroleum, when senior partner Harald Vabø said, “We believe the that UKCS is an attractive part of the North Sea that retains significant potential but lacks adequately funded exploration companies.”

HitecVision are also the $232 million backers of Norwegian and U.K. explorer Spike Exploration, which last year snapped up Bridge Energy in a $164 million deal and now has interests in 16 licenses in the Norwegian Continental Shelf and three U.K. licenses.

Another dynamic has been Statoil’s decision to divest part of their U.K. assets, with OMV of Austria acquiring West of Shetland and Norwegian licenses in a $2.65 billion deal, while strong interest in the Norwegian Continental Shelf was confirmed with the Norwegian Government announcing that in its latest round of exploration license awards 48 companies had been granted 65 production licenses.

Chadwick added, “The Norwegian Continental Shelf (NCS) is far less explored than equivalent assets in the U.K. sector of the North Sea and with assets only 50-100 miles further out from Aberdeen than our most far flung assets, in practical terms it’s not that difficult to service operations in Norwegian waters than in U.K. waters. “From a fiscal perspective, Norway is a very stable environment which is important for potential investors. Employment laws are similar and in some cases more favorable than the in the U.K. and the health and safety culture is on a par with the U.K. Taking all of these factors together, this makes investment in the NCS less of a risk and a relative trouble free environment for U.K. investors. “I think we will see a period of increased investment from Norwegian investors into the UKCS but in reverse U.K. and international funds will be looking to not only add to assets in U.K. waters, but to use their Aberdeen-base to expand existing Norwegian portfolios.”

 

Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

TNO Receives 'International Media Award for Prevention'

The Engagementgame developed by TNO in collaboration with partners is the winner of the 'International Media Award for Prevention' in the category Multi Media.

More German Shipowners Look to Gibdock for Repairs

Gibdock remarks it has continued to see its stock rise amongst the German shipowner community over the past year. Indeed the Gibraltar ship repair yard’s recent

Finance

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

MHI, IHI & DBJ Join Forces On Investments

Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective

Energy

Fortum Buys Stake in Wave Power Startup

Finland's top utility, state-controlled Fortum, on Monday said it has acquired a 14 percent stake in Finnish wave energy developer Wello. Wello has developed

Gazprom Neft Starts Oil Production, Shipments from Iraqi Badra Field

Russia's Gazprom Neft said on Monday it started commercial production and shipments of oil produced at its Iraqi Badra oil field. Gazprom Neft, the oil arm of state gas company Gazprom ,

Statoil Says Normal Operations at In Amenas Gas Plant Resuming

Normal operations are resuming at the In Amenas gas plant in Algeria 18 months after a raid by Islamist militants killed forty employees, one of the plant's operators, Statoil, said on Monday.

News

Fortum Buys Stake in Wave Power Startup

Finland's top utility, state-controlled Fortum, on Monday said it has acquired a 14 percent stake in Finnish wave energy developer Wello. Wello has developed

Gazprom Neft Starts Oil Production, Shipments from Iraqi Badra Field

Russia's Gazprom Neft said on Monday it started commercial production and shipments of oil produced at its Iraqi Badra oil field. Gazprom Neft, the oil arm of state gas company Gazprom ,

Statoil Says Normal Operations at In Amenas Gas Plant Resuming

Normal operations are resuming at the In Amenas gas plant in Algeria 18 months after a raid by Islamist militants killed forty employees, one of the plant's operators, Statoil, said on Monday.

Mergers & Acquisitions

NYK Opens New Planning Center in Kumamoto

On September 1, 2014, NYK and Kozo Keikaku Engineering Inc. established a stowage planning center for container shipping at the Kumamoto office of Kozo Keikaku Engineering Inc.

Dentressangle Acquire U.S. 3PL Provider Jacobson

France's Norbert Dentressangle says it has completed the previously announced acquisition of all the shares of privately held U.S. third party logistics (3PL) provider,

KKR, Borealis Maritime JV acquires 9 container ships

KKR and Borealis Maritime today announced the acquisition of a portfolio of nine feeder container vessels in a sale process coordinated by Commerzbank. The vessels

Offshore Energy

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

Drydocks World to Participate in SMM 2014

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas, and energy sectors, will participate in the prestigious 26th edition of Shipbuilding,

SBM Offshore Completes Real Estate Divestment

SBM Offshore is pleased to announce that is has completed the sale and lease back of its Monaco real estate portfolio.  The last of the three buildings was sold

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1633 sec (6 req/sec)