I have to pick two defining moments for 2017. Both of these are market leading transactions that happened early on the year and really highlighted a turning point with respect to the future of the North Sea.
The transactions I refer to are Enquest’s acquisition of BP’s Magnus platform and the Sullom Voe facility in January, closely followed a few weeks later by Chrysaor’s purchase of a number of Shell assets – particularly the operatorship of Everest, Lomond and Armada.
Both deals were innovative and recognised some element of the decommissioning liability with the previous owner. The North Sea has plenty of opportunity left in it but it needs the remaining assets in the right hands of owners, operators and suppliers. Such creative thinking in the deal structure is key to realising this.
Nimble and dynamic asset owners are required to achieve the vision of maximising economic recovery and these two deals have lead the way for a number of smaller, but equally relevant, transactions and announcements throughout the remainder of the year.
Chrysaor has now formally taken over operatorship of its assets and moves into the transformation phase of the project. I eagerly look forward to watching its strategy of engagement with the supply chain and management of the company’s assets to drive value for shareholders and UK PLC.