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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Finance

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Energy

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

16 Die in Coal Mine Accident in China

Sixteen workers were killed after a coal mine collapsed in China's far western region of Xinjiang, the official Xinhua news agency reported on Saturday, highlighting

News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

USCG to Ensure Safety During World Series

The Coast Guard and local agencies are working to ensure the safety of boaters and baseball fans during World Series games at AT&T Park this weekend. The

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Mergers & Acquisitions

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

Offshore Energy

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction
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: 0.2425 sec (4 req/sec)