Asset Buyout Partners to acquire Mongstad Group
Asset Buyout Partners has agreed to acquire Norwegian port and supply base landlord Mongstad Group. Mongstad Group owns infrastructure and real estate at two major oil and gas supply bases that serve many of the largest oil and gas fields in the North Sea. The acquisition strengthens ABP’s position towards its key customers in the oil and gas industry and significantly increases the company’s growth opportunities going forward.
Asset Buyout Partners (“ABP”) has entered into a definitive agreement to acquire Mongstad Group from EQT Infrastructure II.
Mongstad Group is an owner of infrastructure and real estate and a landlord to high activity oil and gas supply bases located at the ports of Mongstad and Dusavik, supporting about 30 oil and gas fields in the North Sea. The transaction comprises about 1.2 million square meters of land and infrastructure including piping for bulk supply, 120,000 sqm of industrial facilities specialized for oil and gas supply base activities and 800 meters of quays. In addition, there is a combined 370,000 sqm of zoned, undeveloped land that provides expansion opportunities for existing as well as new customers.
Mongstad and Dusavik are hubs for Statoil’s activities in the North Sea and Statoil is the main tenant. Other major tenants include CCB Mongstad, PSW Technology, WellConnection, NOV, Halliburton, North Atlantic Drilling, Archer, GE Oil & Gas, Schlumberger, Halliburton, and others – the majority on long-term lease contracts. CCB Mongstad also sublets to about 30 subtenants that include major industry names such as Aibel, Baker Hughes, Bilfinger, COSL, Halliburton, KCA Deutag, Songa, Odfjell Drilling, Schlumberger, Wintershall, NOFO and SAR.
Going forward, ABP will continue to grow by investing in mission critical oil & gas real estate and infrastructure, leveraging the company’s considerable re-investment capacity. With its unique strategic position – both towards capital markets and potential M&A opportunities – ABP is well positioned to capitalize on scale, portfolio composition and system value to continue to build value for our customers and shareholders.
“The acquisition of Mongstad Group is a significant step in the execution of ABP’s game plan. The portfolio improves ABP’s strategic and competitive position by securing a strong presence at two of the main supply bases serving the oil and gas industry in Norway. The acquisition strengthens ABP’s relationship with many of its key customers and significantly increases the company’s growth opportunities going forward,” says William W. Wittusen, CEO of Asset Buyout Partners.
The parties have agreed not to disclose the transaction value. Closing of the transaction is subject to customary approval by the Norwegian Competition Authority.