Legal Issues Concerning Private Equity Investment in Jointly Owned North Sea Midstream Infrastructure

摘要

Following a number of high-profile investments by private equity interests in North Sea infrastructure, this article considers the legal obstacles which the terms of the Joint Operating Agreement regulating the relationship of the co-owners to an asset may place on such transactions. These include rights of pre-emption which may arise on any attempt by an original participant to dispose of its interest; the difficulties when the transfer is premised on the private equity interests assuming the position of operator; the issues which may arise when contractual definitions assume an interest of the co-owners in associated oil and gas fields or infrastructure which the investing entity does not meet; and it looks at the assurances which the remaining co-owners may be entitled to seek as a condition of consenting to the transfer.