The North American investors are led by ArcLight Capital Partners, a US based private equity firm that specialises in investment in the upstream E&P and power generation sectors. ArcLight will commit $125 million to the joint venture with $75 million being provided by two further North American institutional investors in equal amounts.
North Sea Gas Partners will acquire and develop assets in the Southern North Sea alongside Venture Production, which will act as the field development and production operator of the developments. In return, Venture will receive an enhanced rate of return if the projects NSGP participates in exceed a specified return on investment.
Forming the partnership enables Venture to achieve three key objectives:
Commenting on the news, Mike Wagstaff, Chief Executive of Venture said
'North Sea Gas Partners represents a fantastic opportunity for Venture to deploy additional resources in developing 'stranded' gas assets in the North Sea at a time when bringing gas onstream is a strategic priority for the UK. We are delighted to have attracted a lead investor of ArcLight's caliber and resources. We are currently looking at a range of opportunities in the Southern North Sea and North Sea Gas Partners will provide us with an ability to develop a larger portfolio of assets whilst also providing an enhanced return on each Venture pound invested.'
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