Tampnet to Acquire High Capacity and Low Latency Communications Provider CNSFTC from BPEOC
Ocean News
Increases resiliency in current network infrastructure benefitting all customers
Introduces new services and technology on the UK Continental Shelf
Tampnet and BP continues their long-term relationship
Tampnet AS (“Tampnet”), the Norwegian-based leading offshore high capacity and low latency communications provider, has reached an agreement with BP Exploration Operating Company Limited (“BPEOC”) to acquire 100% of the fibre infrastructure and radio links operator Central North Sea Fibre Telecommunications Company Limited (”CNSFTC”). The transaction also includes acquiring certain associated fibre infrastructure currently owned by BPEOC.
CNSFTC is an Aberdeen-based operator of subsea fibre and radio link infrastructure, primarily on the UK Continental Shelf. CNSFTC serves approximately 20 platforms with high capacity and low latency communication to shore. The offshore fibre infrastructure stretches from Cruden Bay and runs via the Forties’ and Everest oil fields, to the Ula platform where it connects to Tampnet’s fibre infrastructure. CNSFTC today serves a number of BP’s North Sea platforms with high capacity and low latency communication as well as other major oil and gas operators in the UK part of the North Sea. As part of the transaction BP and Tampnet are entering into a long-term contract for the continuation of services to connected BP platforms in the North Sea.
“CNSFTC’s and Tampnet’s networks are complementary and the acquisition has a strong industrial logic as it will increase the reliability and redundancy for the connected customers in the North Sea which is Tampnet’s core market. We already have a good working relationship with CNSFTC, exchanging capacity on our respective networks for redundancy purposes. We look forward to be able to provide the customers of CNSFTC with the latest high capacity and low latency 4G-technology that we are currently rolling out on in the North Sea”, said Per Helge Svensson, CEO of Tampnet.
“CNSFTC was originally created to serve BP’s platforms but subsequently also connected third parties to the network. BP’s strategy is to focus our resources and investment in strategic assets and CNSFTC no longer fits with this. We have been working with Tampnet in the North Sea since 2004 and believe that they will continue to develop the business to ensure the long-term future and reliability of the services to the offshore installations”, said Trevor Garlick, Regional President for BP’s North Sea Business.
Tampnet operates the largest offshore high capacity communication network in the world and serves more than 180 Oil & Gas (“O&G”) platforms, Floating Production Storage and Offloading units (so called FPSOs) and exploration rigs on the Danish, Norwegian and the UK continental shelves of the North Sea as well as in the Gulf of Mexico. In total, Tampnet owns and operates a redundant infrastructure network of 1,500 km subsea fiber and circa 35 radio links and leases capacity in an additional 900 km of subsea fiber in the North Sea. Tampnet is since 2012 wholly owned by EQT Infrastructure I and EQT Infrastructure II (the “EQT Infrastructure Funds”). The EQT Infrastructure Funds are part of EQT, the leading private equity group in Northern Europe with over EUR 22 billion of raised capital. EQT has extensive experience from both the communication and O&G sectors, and sees strong growth and strategic development potential for Tampnet with the acquisition of CNSFTC.
The transaction is expected to close during the fourth quarter of 2014.
Contacts: Per Helge Svensson, CEOTampnet
+47 905 29 868
