The strategic acquisition is a good example of private equity looking to invest in the exploration and production sector.
A North Sea focused E&P company, Siccar Point is backed by funds managed by Blue Water Energy and Blackstone Energy Partners. OMV UK's asset portfolio, concentrated in the West of Shetlands region of the UK Continental Shelf, comprises current production, future developments and exploration acreage. Key assets include an 11.8 % interest in the Schiehallion oil field and a 20.0% interest in the Rosebank field.
The Ashurst team was led by Michael Burns, assisted by counsel Mhairi Main Garcia and associates Grace Rackham, Mary Seely, Jen Ackroyd and Emma Camileri. Employment advice was provided by partner Crowley Woodford, assisted by senior associate Sean Coyne.
Partner Markus Fink advised on pensions issues and real estate advice was provided by counsel Jonathan Hoare. Partner Nick Gardner advised on tax matters.
Under the terms of the transaction, Siccar Point will pay OMV US$750 million in cash (about $997.65 million) and a up to a further US$125 million (about $166.28 million) once a final investment decision is made on the Rosebank field.
“[The strategic transaction] is a good example of the trend of private equity looking to invest in the sector which plays to our strengths as a tier one energy practice combined with leading DNA in private equity,” said lead partner Burns.
David Sheach, General Counsel of Siccar Point, commented: “Having credibility and expertise in both the oil and gas and private equity sectors is critical in deals of this nature but that is only one aspect. Taking that credibility and expertise and applying it in a commercial and practical way is what makes the difference and that is what the team at Ashurst has done on this transaction.”
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