HOUSTON--(BUSINESS WIRE)--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 (NYSE: MRO). 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 Korean pension funds.
Neptune is a cryogenic natural gas processing plant with a capacity of 650 million cubic feet per day. Enterprise Gas Processing, LLC (“Enterprise”), an affiliate of Enterprise Products Partners L.P., 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,” said DH Kim, Chief Investment Officer of Samchully AMC. "We look forward to expanding our North American footprint by continuing to explore midstream and upstream opportunities within the region," continued Mr. 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.
About Samchully AMC
Samchully Asset Management Co. Ltd., the investment arm of the Samchully Group, primarily focuses on direct investment in energy-related businesses such as oil & gas upstream and midstream and power & utilities. Samchully AMC is co-manager of Troika PEF, one of the largest overseas natural resource development funds initiated by the Korean Ministry of Knowledge Economy.
Samchully Group is the largest city gas distributor and major distributor of district heating and electricity in Korea. Samchully Group has continued its energy business for the last fifty-eight years and remains profitable since its foundation.
About Marathon Oil Corporation
Marathon Oil Corporation is an independent international exploration and production company. Based in Houston, Texas, Marathon Oil had net proved reserves at the end of 2011 of 1.8 billion barrels of oil equivalent in North America, Europe and Africa. For more information, please visit the Company’s website at http://www.marathonoil.com.