The EQT Infrastructure II Fund has acquired Mongstad Supply Base, a oil and gas port in Norway, from Wimoh Invest AS.
Mongstad Supply Base outside Bergen is strategically located close to an area with high offshore activity. Mongstad Administrasjon AS owns land, buildings, storage facilities, piping, roads, quays and other infrastructure at the site, and handles more than 280,000 tonnes over quay per year. The base supports about 20 producing oil and gas installations in the North Sea, and is as such essentially a dedicated port to the industry.
Mongstad Administrasjon currently owns over 600,000 m² of developed land and 750 m of quay, accommodating over 2,500 ship arrivals per year. Statoil, a main tenant, has recently announced new sailing routes in order to achieve cost and environmental savings, which is expected to almost double the volumes at the base once fully implemented by the end of 2015. The base is operated by CCB.
EQT Infrastructure II was advised by Handelsbanken Capital Markets, Selmer, McKinsey, PwC and Pangea Property Partners. Wimoh Invest AS was advised by Saga Corporate Finance, Schjødt and EY. The parties have agreed not to disclose the transaction value.
Masoud Homayoun, Director at EQT Partners AB, Investment Advisor to EQT Infrastructure II, stated:
"Mongstad Supply Base is critical in serving the oil and gas industry in the North Sea. Oil producers and service companies are consolidating their operations to fewer and larger supply bases, such as Mongstad Supply Base, to realize cost savings. The expected activity increase at the base will require investments in quays, buildings,tanks and other key infrastructure. This makes Mongstad an excellent platform investment, with the key characteristics EQT is looking for: strong market position, hard assets, very long-term contracts with strong counterparties and, most importantly, development potential."
Tore Notø Johnsen, Managing Director of Mongstad Administrasjon, commented
"The oil and gas industry has undergone a shift in recent years, and the increasing activity we are seeing at the base is a result of that. We are very excited that EQT is coming in as new long-term owner with a willingness to invest and expand the infrastructure at the base."