Independent Infrastructure Investors - Home - OGUK · Independent Infrastructure Investors 5 •Private equity managed funds •Focused on infrastructure assets •Fund managers define

Independent Infrastructure Investors –

Unlocking the North Sea’s Full Potential

Andy Hessell

Managing Director

CATS Management

Limited

Historical Context of NS Infrastructure

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FLAGSFRIGG

SAGE

CATS

SEAL

• Historically constructed by the owners of large fields

• There are some examples of shared infrastructure

• Few examples of infrastructure deliberately oversized to meet future needs of 3rd parties

• Most infrastructure is owned/operated by the majors involved in the original field development

North Sea Infrastructure is Changing

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• Ullage has been created in most systems

• Smaller scale of new developments

• Assets are 20-30+ years old• Availability and access to

infrastructure is essential for MER UK

• Some historical owners divesting assets

Benefits of Dedicated Midstream Owners

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• The asset becomes core in the new owner’s portfolio

• Prepared to invest • Treat all shippers on non-

discriminatory basis• Local approach to supply chain• Minimal overhead• Incentivized to deliver high uptime

and extend life of the asset

Independent Infrastructure Investors

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• Private equity managed funds• Focused on infrastructure assets• Fund managers define investment

criteria• Long term horizons (ca. 10 years)• Some are passive investors, others

seek controlling interest• In all cases look to manage the

business responsibly• Underlying business model is

usually to pursue growth• An appropriate operating model is

required

• Founded in 2007 & manage ca.

€4.0bn on behalf of institutional

Investors

• Portfolio of assets across Europe

• 10 years investment fund horizon

• Seek controlling stakes in assets

Antin IP – Investment in CATS

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1Q 2Q

2016

3Q1Q 4Q2Q

2014

3Q1Q 4Q2Q

2015

WGPSN becomes duty holder

The CATS System

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• Riser platform & 404 km 36” gas pipeline with capacity of ~1.7 bcfd

• Terminal with 2 x 600 mmscfd/d processing trains

• In 2014 delivered almost 8bcm of gas to UK market (10% of UK demand; 20% of domestic production)

• Just celebrated 13 years without an LTI

• For Antin to acquire BP’s share of

CATS they needed to assume

operatorship

• An outsourced duty holder model

was chosen with an operating

partner

• CML needed a capable operating

partner who was aligned with

overall business objectives

• WGPSN selected as CATS Duty

Holder after rigorous tender

exercise

• Anticipate this being a long term

strategic relationship

Operating Partner

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Discretionary incentive payment will be paid to

WGPSN based on a balanced assessment of their performance and the overall performance of the business, with the

key ingredient being mutual trust

Safety

Uptime

Cost Efficiency

Gas Throughput

People

Innovation

BD Support

EBITDA

Antin IP – Vision for UKCS

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Vision

Be recognised as the leading midstream business in the UK

Mission

Deliver our Business Plan

through…

1. Safe, reliable & efficient operation of the CATS System2. Supporting MER from our connected Hubs3. Capturing new business opportunities

Goals & Objectives

Safe & Assured

Excellent Operations

Great People

SustainableBusiness

Win-Win Relationships

The Alternative CATS Pipeline…

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