Linklaters advises as Total sells £585m of North Sea assets

Linklaters has advised Bank of America Merrill Lynch, Crédit Agricole and Royal Bank of Canada (each in their capacity as Mandated Lead Arrangers) in connection with North Sea Midstream Partners’ acquisition of Total’s  FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal for £585million. North Sea Midstream Partners is an affiliate of US based Arclight Capital.

The Frigg UK Pipeline (FUKA) is a 362-kilometer, 32” gas pipeline that delivers gas from some 20 fields in the Northern North Sea to the terminal at St Fergus. The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2,648 million cubic feet of gas per day (Mmscf/d), currently serving over 20 fields. The Shetland Island Regional Gas Export System (SIRGE) is a 234-kilometer, 30” gas pipeline with a capacity of 665 Mmscf/d connecting the Shetland Gas Plant to the FUKA pipeline.

Ian Andrews, Infrastructure partner Linklaters, says: “We have seen the disposal of a number of assets in the North Sea recently but there has been significant interest from funds and private equity players. This is a significant transaction in the region and we could see similar deals on the horizon. This transaction was financed using an innovative structure combining Northsea Midstream Partners’ new acquisition financing with that of its existing debt originally obtained for the acquisition of Teeside Gas Processing Plant Limited in 2012.”

The Linklaters team was led by Infrastructure partner Ian Andrews and managing associate Katie Williams.