Samchully Asset Management (Samchully AMC), a subsidiary of Samchully group, has said that one of its funds has acquired a 34% stake in the Neptune gas processing plant (Neptune) from Marathon Oil Company, a wholly-owned subsidiary of Marathon Oil, for about $170m in cash.
Enterprise Gas Processing, a subsidiary of Enterprise Products Partners, will be the operator of the plant and own the remaining 66% interest.
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Located in St Mary Parish, Louisiana, US, Neptune is a cryogenic natural gas processing plant, which has the capacity to process 650 million cubic feet per day.
Neptune will provide processing services to producers of multiple onshore and offshore gas pipeline systems, which include TransCanada Offshore (ANR), Acadian, Columbia Gulf Transmission, Nautilus and Sea Robin – East (Trunkline) pipelines.
Samchully AMC chief investment officer DH Kim said the acquisition of Neptune represents the company’s ability to invest in North American energy.
"We look forward to expanding our North American footprint by continuing to explore midstream and upstream opportunities within the region," Kim added.
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By GlobalDataWells Fargo Securities will be the exclusive financial advisor to Samchully AMC, while Skadden, Arps, Slate, Meagher and Flom will act as legal counsel.
Samchully AMC, the first Korean financial firm to invest in a US midstream asset, established a special purpose vehicle owned by a new fund that comprises Korean pension funds to carry out the acquisition.
Marathon Oil reported net proved reserves of about 1.8 billion barrels of oil equivalent in North America, Europe and Africa, at the end of 2011.
Image: Samchully Asset Management has acquired a 34% interest in the Neptune Gas Processing Plant in Louisiana, US. Photo: courtesy of Alan Longbottom.
