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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Georgia Hooks Trident Seafoods

Trident Seafoods has opened a $40 million production and distribution center in Carrollton, Ga., providing 175 full-time jobs and the capacity to produce 50,000

Intermarine Opens Office in Ecuador

Intermarine, LLC, a transporter of project, breakbulk and heavylift cargo, announced it has opened an office in Quito, Ecuador.   The new office will operate

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

Finance

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

News

Georgia Hooks Trident Seafoods

Trident Seafoods has opened a $40 million production and distribution center in Carrollton, Ga., providing 175 full-time jobs and the capacity to produce 50,000

Hurricane Fred Strengthens in Eastern Atlantic

Hurricane Fred strengthened early Monday in the eastern Atlantic as it approached the Cape Verde Islands, while the remnants of Tropical Storm Erika brought flooding to parts of South Carolina,

Intermarine Opens Office in Ecuador

Intermarine, LLC, a transporter of project, breakbulk and heavylift cargo, announced it has opened an office in Quito, Ecuador.   The new office will operate

Mergers & Acquisitions

Keppel Acquires Cameron's Rig Business

Singapore's Keppel Offshore & Marine (KOM), via subsidiary, Keppel Offshore & Marine USA  has inked a deal with Cameron International Corporation, a US-based oil and gas solutions provider,

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

IRS Opens Office in Abu Dhabi

Indian Register of Shipping (IRClass), a leading Classification Society, today announced it has opened offices in Abu Dhabi. Abu Dhabi is the second office

Offshore Energy

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

Hitachi Gas Supply System Order for MHI

Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Hitachi Zosen Corporation for a high-pressure gas supply system enabling use of natural gas as fuel in marine engines.

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.2074 sec (5 req/sec)