Samchully Asset Management Co. Ltd. (“Samchully AMC”) today announced that one of its funds has completed the acquisition of a 34% interest in the Neptune Gas Processing Plant (“Neptune”) located in St. Mary Parish, Louisiana from Marathon Oil Company (“Marathon”), a wholly owned subsidiary of Marathon Oil Corporation. The total purchase price of approximately $170 million is comprised of 100% cash which has been paid to Marathon.
The transaction represents the first direct investment in a United States midstream asset by a Korean financial entity. For purposes of the acquisition, Samchully AMC established a special purpose vehicle that is owned by a new fund, with investors reported to be comprised of Koreanpension funds.
Neptune is a cryogenic natural gas processing plant with a capacity of 650 million cubic feet per day. Enterprise Gas Processing LLC, an affiliate of Enterprise Products Partners LP, is the operator of the plant and owns the remaining 66% interest. Neptune provides processing services for producers into multiple onshore and offshore gas pipeline systems including TransCanada Offshore (ANR), Acadian, Columbia Gulf Transmission, Nautilus and Sea Robin - East (Trunkline) pipelines.
"We are pleased to announce the acquisition of Neptune demonstrating our ability to execute on our strategy of investing in North American energy,” DH Kim, chief investment Officer of Samchully AMC, said in a release. "We look forward to expanding our North American
footprint by continuing to explore midstream and upstream opportunities within the region," continued Kim.
Wells Fargo Securities, LLC acted as exclusive financial advisor to Samchully AMC and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel. Tudor, Pickering, Holt & Co., LLC served as financial advisor to Marathon and Baker Botts L.L.P. served as legal counsel.
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