EQT Infrastructure II (“EQT Infrastructure”) has entered into a definitive agreement to sell Mongstad Group to Asset Buyout Partners (“ABP”), a real estate investor specialized on oil and gas clusters, founded by Norwegian private equity investor HitecVision.
Mongstad Group was acquired by EQT Infrastructure in August 2015 and is the owner of infrastructure and landlord at two high activity oil and gas supply bases at strategically located ports serving producing platforms in the Norwegian North Sea. The strategy has revolved around investing in infrastructure and properties to support the increasing supply base activity through acquisitions and contracted development projects for partners, including Statoil and various oil & gas service companies.
In total, expansion and upgrade projects of more than NOK 500 million have been completed on behalf of Statoil and Mongstad Group’s other partners to enable growth, customer cost savings and environmental benefits by improving supply base infrastructure and security.
Since EQT Infrastructure came in as owner, Mongstad Group has grown through several acquisitions at the port of Mongstad outside Bergen and expanded to Dusavik. Dusavik port is located outside Stavanger and is a key supply base serving the southern part of the Norwegian North Sea, which includes being the designated supply base for the Johan Sverdrup development, the largest oil field development on the Norwegian Continental Shelf.
With these initiatives, Mongstad Group has grown threefold in revenues from 2015 to 2018.
Tore Noto Johnsen, CEO of Mongstad Group, comments: “Together with EQT, Mongstad Group has grown its offering of infrastructure and properties supporting more than 20 producing platforms in the Norwegian North Sea served from the supply base. We are now excited to continue our journey with ABP and continue to improve our combined offering and capacity as a leading Norwegian port landlord and developer of supply base infrastructure.”
Masoud Homayoun, Partner at EQT Partners, Investment Advisor to EQT Infrastructure, adds: “Since 2015, Mongstad Group has undergone an extraordinary transformation to become an infrastructure owner and developer of critical importance to the offshore oil and gas industry. In the capable hands of the company’s management and ABP as a strong new owner, we believe that Mongstad Group will continue to prosper and support its customers.“
Closing of the transaction is subject to customary approval by the Norwegian Competition Authority.
Morgan Stanley & DNB Markets acted as financial advisers and Selmer as legal adviser to EQT Infrastructure.
The parties have agreed not to disclose the transaction value.
Masoud Homayoun, Partner at EQT Partners, Investment Advisor to EQT Infrastructure, +46 8 506 55 348
EQT Press contact, +46 8 506 55 334
About Mongstad Group
Mongstad Group is an owner of key infrastructure and a landlord to high activity oil and gas supply bases at the strategically located ports of Mongstad and Dusavik, supporting about 30 oil and gas fields in the Norwegian North Sea.
More info: www.mongstadgroup.no
EQT is a leading investment firm with approximately EUR 49 billion in raised capital across 26 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More info: www.eqtpartners.com
About Asset Buyout Partners
Asset Buyout Partners is an industrial real estate company with a dedicated investment strategy aimed towards real estate and infrastructure assets located in Norwegian oil and gas clusters. The company Is owned by HitecVision, Europe’s leading specialist private equity investor focused on the oil and gas industry.
More info: www.abpre.no